© Reuters. FILE PHOTO: An image illustration reveals U.S. 100 greenback financial institution notes B
By Hideyuki Sano
TOKYO (Reuters) – The greenback held floor towards riskier currencies on Monday as weak financial information from Europe and recent worries concerning the coronavirus supported investor demand for safe-havens, stretching dollar promoting positions.
Financial exercise within the euro zone shrank markedly in January as stringent lockdowns to include the coronavirus pandemic hit the bloc’s dominant service trade laborious whereas UK information confirmed British retailers struggled to recuperate in December.
British Prime Minister Boris Johnson additionally mentioned on Friday there was proof a brand new variant of COVID-19 found late final yr may very well be related to increased mortality.
The information got here as bets towards the greenback have turn out to be overcrowded, analysts mentioned, with U.S. information on Friday displaying internet greenback quick positions swelling to the most important since Could 2011.
The stood at 90.247, flat on the day however off final week’s low of 90.043 set on Thursday.
The euro was additionally little modified at $1.2163, taking a pause after a 0.8% achieve final week. The widespread forex is capped partly by indicators of political instability in Rome.
Italian bond yields rose with spreads over German Bunds hitting their highest since November amid a political deadlock for Prime Minister Giuseppe Conte who has thus far did not drum up a ruling majority in Italy’s…