FOREX-Euro dips on French lockdown fears, U.S. vote drives volatility gauges up

  • 10/28/2020
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* Implied volatility rises in yen, euro * Yen rises to 1-month high vs dollar, 3-month high vs euro * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E (Updates prices, adds new comments and latest news) LONDON, Oct 28 (Reuters) - The dollar rose against the euro on prospects of a national coronavirus lockdown in France, with implied volatility gauges in the common currency and the yen hitting multi-month highs as traders positioned for next week’s U.S. election. The dollar fell against the safe-haven Japanese currency, as disappointment that the United States has not yet found a way to push through another round of fiscal stimulus also weighed on market sentiment. President Emmanuel Macron will give a televised address on Wednesday, amid media reports that the French government may impose a lockdown from midnight on Thursday. The European Commission proposed on Wednesday a series of new measures to fight the COVID-19 pandemic in the European Union, saying the new spike in infections on the continent was “alarming”. With news that Pfizer Inc has not yet been able to determine how well its late-phase COVID-19 vaccine protects against the disease adding to the cautious mood, riskier assets fell across markets. Novavax Inc, another company working on a new coronavirus vaccine, said it will launch the Phase 3 trial in the United States by the end of next month. The euro was down 0.5% at $1.1738, while the yen rose 0.2% to 104.16 per dollar, its highest in more than a month. The euro/Japanese yen fell 0.7% at 122.16, its weakest since July 20. One-week implied volatility gauges in euro and yen rose to their highest in nearly seven months.

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