* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds quotes, updates prices; previous LONDON)
By Karen Brettell
NEW YORK, Dec 10 (Reuters) - The euro jumped on Thursday after the European Central Bank disappointed
some investors looking for a larger stimulus boost, while sterling fell after post-Brexit trade talks were
extended to the weekend in hope of an elusive breakthrough.
The ECB expanded its debt purchase scheme and agreed to provide banks with even more ultra-cheap
liquidity as long as they keep passing the cash onto companies. But it "left the gun powder dry and no bazooka was fired. This has made investors bullish on the euro
as the expectations were that the ECB is worried about the economic recovery," said Naeem Aslam, chief
market analyst at Ava Trade.
The ECB also said that it is monitoring the euro's exchange rate with regards to its possible
implications for the medium-term inflation outlook, after it last week hit a two-and-a-half year high
against the greenback.
Analysts and market participants are watching to see if global central banks indicate they may act to
stem the relative strength of their currencies as the greenback tumbles.
"It's the second major central bank to casually note exchange rate developments recently, underscoring
the sliding USD," said Mark McCormick, global head of FX strategy at TD Securities. "We don't think there
is too much the ECB can do to reverse market trends, though they can take some steam off the top."
The Bank of Canada on Wednesday attributed strength in the Canadian dollar to U.S. dollar's
broad-based decline. The euro EUR=EBS was last up 0.60% on the day at $1.2154.
The dollar also weakened after data on Thursday showed that the number of Americans filing first-time
claims for unemployment benefits increased more than expected last week as mounting new COVID-19
infections caused more business restrictions. Sterling slipped as market participants became more cautious about the risk of a no-deal Brexit.
The European Commission and Britain remained "far apart" on a Brexit trade deal, the bloc's chief
executive said on Wednesday night after what she described as a "lively" dinner with UK Prime Minister
Boris Johnson. Bank of England Governor Andrew Bailey has said a no-deal Brexit would cause more lasting damage to
Britain's economy than the COVID-19 pandemic. Sterling GBP=D3 was last down 0.65% at $1.3315.
The British currency is struggling to get above technical resistance at the $1.35 area, and this is
the third time it has failed at this level since December 2019, said Tom Fitzpatrick, global head of
CitiFX Technicals.
The Australian dollar hit a two-and-a-half year high on growing optimism that global growth will
improve, and that the Reserve Bank of Australia is unlikely to further loosen policy after cutting rates
to a historic low of 0.1% in November.
"China's economy showing mounting signs of strength, that is boding better for a global recovery and I
think that's leading the market to unwind expectations of looser policy from down under," said Joe
Manimbo, senior market analyst at Western Union Business Solutions in Washington.
The Aussie AUD=D3 gained 1.03% to $0.7518.
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Currency bid prices at 10:01AM (1501 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $90.6780 91.0960 -0.45% +0.00% +91.1530 +90.6750
Euro/Dollar EUR=EBS $1.2154 $1.2082 +0.60% +8.42% +1.2158 +1.2073
Dollar/Yen JPY=D3 104.2300 104.2200 +0.02% -4.03% +104.5750 +104.2400
Euro/Yen EURJPY= 126.67 125.92 +0.60% +3.87% +126.7300 +125.8700
Dollar/Swiss CHF=EBS 0.8854 0.8896 -0.46% -8.49% +0.8901 +0.8853
Sterling/Dollar GBP=D3 1.3315 1.3403 -0.65% +0.40% +1.3409 +1.3245
Dollar/Canadian CAD=D3 1.2709 1.2820 -0.86% -2.16% +1.2828 +1.2709
Aussie/Dollar AUD=D3 0.7518 0.7442 +1.03% +7.15% +0.7521 +0.7426
Euro/Swiss EURCHF= 1.0759 1.0746 +0.12% -0.85% +1.0769 +1.0739
Euro/Sterling EURGBP= 0.9127 0.9015 +1.24% +7.96% +0.9132 +0.9010
NZ NZD=D3 0.7073 0.7022 +0.73% +5.11% +0.7073 +0.7013
Dollar/Dollar
Dollar/Norway NOK=D3 8.7695 8.8325 -0.76% -0.07% +8.8475 +8.7655
Euro/Norway EURNOK= 10.6607 10.6890 -0.26% +8.36% +10.7130 +10.6430
Dollar/Sweden SEK= 8.4429 8.4721 +0.17% -9.68% +8.5004 +8.4429
Euro/Sweden EURSEK= 10.2618 10.2440 +0.17% -1.99% +10.2767 +10.2345