* Hope of bailout for U.S. carmakers boosts sentiment
* For up-to-the-minute market news, click on FXNEWS
(Updates prices, adds quotes, changes byline)
By Steven C. Johnson
NEW YORK, Dec 8 (Reuters) - The U.S. dollar fell on Monday as President-elect Barack Obama's plan for massive infrastructure spending lifted global stock markets, spurring investors to reduce holdings of safe-haven dollars and take on more risk.
A Democratic bailout plan for the three U.S. automakers also whetted global risk appetite, pushing the dollar and yen lower at the expense of higher-yielding currencies such as the euro, sterling and Australian dollar.
The euro rose 1.6 percent to $1.2940 <EUR=>, its best daily gain in two weeks. Analysts said the twin hopes of an automaker rescue and more government spending calmed market turmoil that had sent yields on three-month Treasury bills to near zero.
"With the news that a very large fiscal stimulus package is being planned by the Obama administration, investors are starting to anticipate less bad news in 2009, and that has generated a pop in risk appetite," said Robert Blake, senior currency strategist at State Street Global Markets in Boston.
Obama, who takes office Jan. 20, has talked of plans to create 2.5 million new jobs by 2011 and to launch the largest infrastructure investment since the 1950s. [ID:nN05458678]
Blake said hopes of new construction projects helped lift currencies from commodity-producing countries such as New Zealand <NZD=> and Australia <AUD=> on Monday. Both were up between 2 percent and 3 percent against the U.S. dollar.
Elsewhere, the euro rose 1.7 percent to 120.28 yen <EURJPY=> after earlier soaring as high 120.99, while the dollar was little edged up 0.1 percent to 92.96 yen <JPY=>.
Stock market gains are seen as a sign of easing risk aversion and can curb demand for the yen, which rises when risk-taking declines and carry trades are unwound.
The equities rally also benefited the pound, which gained 1 percent against the dollar to $1.4910 <GBP=>, while the dollar fell 1.2 percent to 1.2049 Swiss francs <CHF=>.
Congressional Democrats said on Monday they had sent a $15 billion auto sector rescue package proposal to the White House for consideration [ID:nN07460314].
Hopes for a bailout gained traction after Friday's disappointing employment figures encouraged U.S. lawmakers to take action to shield the economy from the credit crunch and a global recession.
Vassili Serebriakov, currency strategist at Wells Fargo in New York, said some of the day's optimism was tied "to the fact that the U.S. auto industry appears likely to avoid bankruptcy -- at least for now."
Despite the dollar's drop on Monday, analysts do not expect the U.S. currency to continue losing ground, as concerns remain about a deep global recession, which many say will keep investors wary of taking on too much risk.
"I continue to believe that more material bad news for the global economy is still ahead of us," said Stephen Jen, global head of currency research at Morgan Stanley in London. "In the new year, I see the dollar and the yen higher against most currencies, especially emerging market currencies."
(Additional reporting by Naomi Tajitsu in London) (Reporting by Nick Olivari)
Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.