* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Euro extends gains vs dollar
* Commodity currencies rise vs dollar
* Sterling rises after Britain unveils stimulus package
(Adds new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, July 8 (Reuters) - The dollar dropped to two-week lows on Wednesday, showing reduced
safe-haven appeal for now, as U.S. tech stocks rallied and commodity prices firmed, even as sentiment
remained cautious amid a resurgence of new coronavirus cases globally, particularly in the United States.
The euro, meanwhile, rose to three-week highs against the dollar, while commodity currencies such as
the Australian, New Zealand, and Canadian dollars gained.
The NASDAQ index .IXIC gained 0.8% on the day, reversing Tuesday's loss, feeding the currency
market's risk appetite.
The dollar is typically seen as a safe haven for investors to park their cash each time a resurgence
of the pandemic seems to threaten a global economic recovery.
"Investors are growing more confident that this stock market rally is not going to end any time soon,"
said Edward Moya, senior market analyst, at OANDA in New York. "And that's pretty much based on
expectations that you're going to continue to see a strong global stimulus response over the coming weeks
and months."
That said, the U.S. Centers for Disease Control and Prevention (CDC) on Wednesday reported 2,982,900
cases of new coronavirus, an increase of 50,304 cases from its previous count. It said the number of
deaths had risen by 932 to 131,065. Against a basket of its rivals, the dollar =USD dropped 0.5% to 96.448 in early afternoon trading.
A decline in the dollar earlier this week set off the so-called "Death Cross," a bearish technical
formation that occurs when the 50-day moving average crosses below the 200-day moving average. Past occurrences of the Death Cross have been followed by dollar weakness eight out of nine times
since 1980 when the 200-day moving average has been declining, as it is now, analysts at BofA Securities
said.
The euro EUR=EBS rose 0.6% versus the dollar to $1.1338.
Commodity currencies, which tend to thrive in times of increased risk appetite, also gained against
the dollar.
The Australian dollar rose 0.5% against the greenback to US$0.6977 AUD=D3 . The New Zealand dollar
NZD=D3 grew 0.4% to US$0.6572, with the Canadian dollar CAD=D3 rising 0.7% to C$1.3514 per U.S.
dollar.
Against the safe-haven yen, the dollar was down on the day at 107.25 yen JPY=EBS . The greenback was
also 0.5% lower versus the Swiss franc at 0.9381 franc CHF=EBS .
Sterling GBP=D3 shrugged off earlier losses and rose 0.6% to $1.2588, after British finance minister
Rishi Sunak promised 30 billion pounds ($37.7 billion) to head off an unemployment crisis by paying
companies to bring back furloughed workers and cutting taxes for hospitality firms and homebuyers.
Earlier, the onshore yuan CNY=CFXS was stable at 7.0129, halting a two-day rally, after the Chinese
central bank's daily midpoint for the currency was set at a weaker than expected level.
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Currency bid prices at 2:10PM (1810 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1332 $1.1270 +0.55% +1.09% +1.1351 +1.1264
Dollar/Yen JPY= 107.2200 107.5100 -0.27% -1.51% +107.7000 +107.2400
Euro/Yen EURJPY= 121.53 121.20 +0.27% -0.34% +121.8800 +121.1500
Dollar/Swiss CHF= 0.9380 0.9421 -0.44% -3.08% +0.9432 +0.9371
Sterling/Dollar GBP= 1.2615 1.2540 +0.60% -4.86% +1.2617 +1.2510
Dollar/Canadian CAD= 1.3506 1.3602 -0.71% +4.00% +1.3623 +1.3504
Australian/Doll AUD= 0.6978 0.6946 +0.46% -0.61% +0.6980 +0.6928
ar
Euro/Swiss EURCHF= 1.0634 1.0623 +0.10% -2.03% +1.0640 +1.0616
Euro/Sterling EURGBP= 0.8982 0.8987 -0.06% +6.25% +0.9010 +0.8976
NZ NZD= 0.6575 0.6546 +0.44% -2.39% +0.6576 +0.6531
Dollar/Dollar
Dollar/Norway NOK= 9.3986 9.4714 -0.77% +7.07% +9.5144 +9.3889
Euro/Norway EURNOK= 10.6534 10.7055 -0.49% +8.29% +10.7310 +10.6510
Dollar/Sweden SEK= 9.1765 9.2630 -0.37% -1.83% +9.2737 +9.1694
Euro/Sweden EURSEK= 10.4030 10.4416 -0.37% -0.63% +10.4470 +10.3998
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ANALYSIS-'Death Cross' strikes U.S. dollar as COVID-19 cases grow World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
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