FOREX-Dollar edges down; New Zealand and Aussie dollars gain

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

LONDON, June 8 (Reuters) - The dollar strengthened against a
basket of currencies in overnight trading on Monday but slipped
in early London trading, as investors adjusted their
expectations for an economic recovery after Friday's U.S.
employment data saw markets rally.
A recovery in U.S. employment data lifted hopes of a quicker
global economic revival on Friday, but in Europe on Monday the
rally in stocks paused as investors turned cautious again.
New Zealand said on Monday that it has eliminated
transmission of the coronavirus domestically and will lift all
containment measures except for border controls, making it one
of the first countries to do so. The riskier New Zealand dollar rose to its highest in more
than four months in overnight trading as the Asian session
caught up with Friday's rally NZD=D3 , and the Australian
dollar was close to five-month highs AUD=D3 .
But German industrial plunged the most on record in April as
the coronavirus pandemic forced companies in Europe's largest
economy to scale back production. At 0700 GMT, the dollar index was at 96.88, up 0.2% on the
day =USD . It then fell to 96.82 by 0740 GMT.
The euro edged up, having slipped down from recent highs, at
$1.1299 EUR=EBS . It hit a three-month high of $1.1384 last
week after the European Central Bank announced that it was
expanding its stimulus programme. ECB President Christine Lagarde will speak at the European
Parliament at 1345 GMT.
"EUR/USD may be due some consolidation after a very strong
rally, but we suspect the 1.1230/40 area offers good support now
before EUR/USD advances to the 1.15/16 area," ING strategists
wrote in a note to clients.
They also said the risk of a second wave of COVID-19 and the
possibility the Federal Reserve will stop providing cheap
liquidity threatened the prevailing narrative of an economic
recovery.
Investors are now waiting for more information about a
European Union recovery fund proposed last month - a 750
billion-euro plan to prop up European economies hammered by the
coronavirus pandemic. The safe-haven Japanese yen rose against the dollar, at
109.53 at 0730 GMT JPY=EBS , but the Swiss franc fell around
0.2% against both the dollar and euro CHF=EBS EURCHF=EBS .
Major oil producers agreed to extend a deal on output cuts
to the end of July as China's crude imports hit an all-time high
in May. The Norwegian crown held close to three-month highs
against the dollar and euro NOK=D3 EURNOK=D3 as oil prices
climbed.