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FOREX-Safe havens gain as U.S.-China trade deal hopes ebb

Published 10/14/2019, 09:47 PM
Updated 10/14/2019, 09:50 PM
© Reuters.  FOREX-Safe havens gain as U.S.-China trade deal hopes ebb
GBP/USD
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DXY
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* Safe havens U.S. dollar, Swiss franc, yen gain
* Sterling falls as EU, Britain pursue Brexit deal
* Asian and U.S. holidays seen limiting trade volumes

(Updates trading and comments to U.S. market open, new byline,
changes dateline, previous LONDON)
By Karen Brettell
NEW YORK, Oct 14 (Reuters) - Safe-haven currencies including
the U.S. dollar gained on Monday as optimism over a trade deal
between the United States and China ebbed.
The greenback, Swiss franc and Japanese yen all weakened on
Friday as optimism over the trade talks, together with the
European Union and Britain restarting Brexit negotiations,
encouraged investors into riskier assets.
U.S. President Donald Trump on Friday outlined the first
phase of a deal to end the trade war and suspended a threatened
tariff hike, but officials on both sides said much more work
needed to be done before an accord could be agreed. The safe havens gained on Monday, however, after Bloomberg
News reported that China wants more talks as soon as the end of
October to hammer out the details of the “phase one” deal.
U.S. Treasury Secretary Steven Mnuchin also said on Monday
that an additional round of tariffs on Chinese imports will
likely be imposed if a trade deal with China has not been
reached by the time they are set to start, but added that he
expected the agreement to go through. Analysts said the partial deal between the world's two
largest economies appeared to lack substance with limited
progress on structural issues such as technology transfers.
Manuel Oliveri, an analyst at Credit Agricole, said the
announcements so far did not amount to "a broad-based trade
deal" that would justify last week's market optimism.
The dollar index against a basket of six major currencies
.DXY gained 0.20 percent to 98.501, up from a three-week low
of 98.197 reached on Friday.
Trading volumes are likely lighter than usual with Tokyo's
market closed for a public holiday and a holiday in the United
States for Columbus Day.
Emerging market currencies and those closely linked to broad
risk sentiment, such as the Australian dollar and Swedish crown,
slipped, after rallying at the end of last week.
Sterling also dropped against both the dollar and euro
GBP= , EURGBP= after Britain and the EU stressed over the
weekend that there was a long way to go before they could agree
a Brexit deal. Sterling surged late last week after London and Brussels
announced "intense" negotiations to try and agree a Brexit deal
before Oct. 31.

========================================================
Currency bid prices at 9:27AM (1327 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1020 $1.1040 -0.18% -3.91% +1.1048 +1.1014
Dollar/Yen JPY= 108.3100 108.4000 -0.08% -1.77% +108.5200 +108.0500
Euro/Yen EURJPY= 119.38 119.62 -0.20% -5.42% +119.6900 +119.2000
Dollar/Swiss CHF= 0.9964 0.9965 -0.01% +1.54% +0.9983 +0.9945
Sterling/Dollar GBP= 1.2577 1.2647 -0.55% -1.41% +1.2653 +1.2518
Dollar/Canadian CAD= 1.3225 1.3196 +0.22% -3.02% +1.3227 +1.3192
Australian/Doll AUD= 0.6750 0.6787 -0.55% -4.26% +0.6801 +0.6752
ar
Euro/Swiss EURCHF= 1.0983 1.0998 -0.14% -2.41% +1.1010 +1.0972
Euro/Sterling EURGBP= 0.8762 0.8729 +0.38% -2.47% +0.8811 +0.8726
NZ NZD= 0.6280 0.6336 -0.88% -6.51% +0.6335 +0.6282
Dollar/Dollar
Dollar/Norway NOK= 9.1207 9.0791 +0.46% +5.58% +9.1239 +9.0738
Euro/Norway EURNOK= 10.0529 10.0187 +0.34% +1.48% +10.0707 +10.0161
Dollar/Sweden SEK= 9.8333 9.8029 +0.16% +9.70% +9.8608 +9.8045
Euro/Sweden EURSEK= 10.8384 10.8213 +0.16% +5.60% +10.8670 +10.8183



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