News: FOREX-Euro dips from 4-month high vs dollar, but outlook well-supported

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    • EU leaders go into fourth day of EU negotiations
    • Frugal northern states seek less in grants from recovery fund
    • U.S. dollar index rises from 6-week low
    • Graphic: World FX rates in 2020

    (Adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)

    The euro slipped against the dollar on Monday, as investors booked profits on earlier gains that took it to a more than four-month high on hopes the European Union would agree on a recovery fund for economies in the region hit by the COVID-19 pandemic.

    The fund is expected to be around 750 billion euros ($857.93 billion), of which 390 billion euros could be offered as grants.

    EU leaders have made progress in Brussels after three days of talks, but they remain at odds over the composition of the recovery fund. The fund's backers initially proposed 500 billion euros of grants and 250 billion of loans.

    Some countries objected to that much in grants. They saw 350 billion euros as the maximum, but showed signs of compromising.

    "We can see some profit-taking in the euro," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto. "But I can still see it as well-supported on weakness as this deal is good for the European economy."

    The euro hit a high of $1.1467 EUR=EBS and was last down 0.1% at $1.1412. Analysts said the smaller the amount of grants, the more the euro would fall. The EU summit was originally due to last two days. The fact that it is now continuing into a fourth day of negotiations is evidence that EU leaders are ready to do everything it takes to maintain unity in the euro zone, said Jane Foley, senior currency strategist at Rabobank in London

    If they agree on a recovery fund, that would boost confidence in the euro regardless of the numbers in the deal, said Mike Bell, global market strategist at J.P. Morgan Asset Management.

    Elsewhere, the U.S. dollar index USD= rose 0.1% to 96.002, recovering from a six-week low hit earlier in the session. Its gains, though, remain capped by expectations of more stimulus from Europe and from the United States.

    That said, the U.S. Congress is bracing for a battle on the proposed stimulus bill, that could further boost safe-haven bids for the dollar.

    U.S. Senate Democrats are prepared to block Republicans from moving forward on a partisan coronavirus aid bill, the chamber's top Democrat warned on Monday, as Republican leaders were expected to meet at the White House to discuss legislation.

    The dollar rose 0.1% versus the yen to 107.14 JPY=EBS , and was up 0.1% as well against the Swiss franc to 0.9393 franc CHF=EBS .

    	Currency bid prices at 10:11AM (1411 GMT) 
     Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
    											  Previous				   Change				  
     Euro/Dollar	  EUR=		$1.1415		$1.1426	 -0.10%		 +1.83%	  +1.1467	 +1.1403 
     Dollar/Yen	   JPY=		107.1400	   106.9900	+0.14%		 -1.58%	  +107.5200   +107.0200 
     Euro/Yen		 EURJPY=	 122.31		 122.30	  +0.01%		 +0.30%	  +122.9700   +122.1900 
     Dollar/Swiss	 CHF=		0.9393		 0.9384	  +0.10%		 -2.94%	  +0.9410	 +0.9374 
     Sterling/Dollar  GBP=		1.2629		 1.2565	  +0.51%		 -4.75%	  +1.2645	 +1.2519 
     Dollar/Canadian  CAD=		1.3550		 1.3576	  -0.19%		 +4.34%	  +1.3600	 +1.3550 
     Australian/Doll  AUD=		0.7001		 0.6995	  +0.09%		 -0.28%	  +0.7005	 +0.6974 
     Euro/Swiss	   EURCHF=	 1.0723		 1.0723	  +0.00%		 -1.19%	  +1.0776	 +1.0721 
     Euro/Sterling	EURGBP=	 0.9037		 0.9088	  -0.56%		 +6.90%	  +0.9138	 +0.9032 
     NZ			   NZD=		0.6559		 0.6556	  +0.05%		 -2.63%	  +0.6569	 +0.6540 
     Dollar/Norway	NOK=		9.2803		 9.2928	  -0.13%		 +5.72%	  +9.3228	 +9.2467 
     Euro/Norway	  EURNOK=	 10.5940		10.6240	 -0.28%		 +7.69%	  +10.6353	+10.5848 
     Dollar/Sweden	SEK=		9.0098		 9.0334	  -0.41%		 -3.61%	  +9.0640	 +8.9870 
     Euro/Sweden	  EURSEK=	 10.2864		10.3285	 -0.41%		 -1.75%	  +10.3395	+10.2871 
    Euro jumps to 4-month high 
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