[BREAKING] Dollar Found Support as the Virus' Spread & Stimulus Status Remains Uncertain

SINGAPORE (Reuters) - The dollar found support on Monday, as surging coronavirus cases in Europe and the United States and a lack of progress toward a U.S. stimulus package put traders in a cautious mood, although hopes for a Brexit trade deal held sterling steady.

Against a basket of currencies, the greenback traded between steady and slightly firmer early in the Asia session, hovering around the middle of a range it has held for months.

Against the risk-sensitive Australian dollar and New Zealand dollars, it gained about 0.1%. Sterling, however, rose a tiny bit to $1.3046.

The United States has recorded its highest ever number of new COVID-19 cases for two consecutive days, while Italy has ordered restaurants and bars to shut by 6 p.m. as a fresh wave of infections sweeps Europe.

U.S. House Speaker Nancy Pelosi said on Sunday that she expected a White House response on Monday regarding the latest stimulus spending plan - but there have been few tangible signs that a long-stalled deal is actually nearer.

“The combination of receding hopes for a pre-election fiscal deal and the news on COVID and potentially stricter lockdowns is enough to take a bite out of the stock market,” said Ray Attrill, head of FX strategy at National Australia Bank.

He said a dip in S&P 500 futures ESc1 had spilled over into currency markets, where traders are also in a cautious mood ahead of the U.S. election on Nov. 3.

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