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FOREX-Euro, yen steady on expectations of U.S. auto tariff delay

Published 05/16/2019, 12:28 PM
Updated 05/16/2019, 12:30 PM
© Reuters.  FOREX-Euro, yen steady on expectations of U.S. auto tariff delay
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* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Trump expected to delay imposing auto tariffs, easing
trade woes
* Euro lifted on hopes transatlantic trade tensions won't
heat up
* Aussie slips to 4-1/2-month low on weak domestic jobs data

(Adds details and quotes, updates prices)
By Shinichi Saoshiro
TOKYO, May 16 (Reuters) - The euro and yen steadied against
the dollar on Thursday, after U.S. officials said President
Donald Trump was expected to delay implementing tariffs on
imported cars and parts by up to six months to give trade
negotiators more time. The euro was 0.1% higher at $1.1208 EUR= , having bounced
overnight from a one-week low of $1.1178. The single currency
was initially hit as Italy's Deputy Prime Minister Matteo
Salvini criticized European Union rules for the second day.
"Long term prospects for the euro are not particularly
bright, given the region's soft economic fundamentals. But the
news on the auto tariff delay is helping the euro establish
support at the $1.1200 threshold," said Shin Kadota, senior
strategist at Barclays in Tokyo.
The dollar edged down 0.1% to 109.485 yen JPY= .
Kyosuke Suzuki, director of FX at Societe Generale in Tokyo,
said uncertainty stemming from the escalation in the Sino-U.S.
trade war was weighing on the dollar.
The greenback had retreated to a low of 109.150 against the
safe-haven yen on Wednesday as U.S. yields slid on weak U.S.
April retail sales and industrial output data. China also
reported surprisingly weaker growth in retail sales and
industrial output for April, and the discouraging data from the
world's two largest economies made investors more wary of
riskier assets. The dollar index against a basket of six major currencies
was nearly flat at 97.542 .DXY after posting modest gains the
previous day.
The Australian dollar was 0.25% lower at $0.6913 AUD=D4 .
The Aussie dropped to a low as $0.6893, its weakest since
early January, after data on Thursday showed Australia's
unemployment reach an eight-month high in April. The lacklustre jobs data strengthened views that the Reserve
Bank of Australia would be forced to cut interest rates soon.
Opinion polls show Australia's governing Liberal-National
coalition is likely to be defeated by the opposition Labour
Party in this weekend's general election, and the jobs data made
unhelpful reading for ruling parties that campaigned hard on
their record of providing sound economic management.
The pound struggled near a three-month low of $1.2827
GBP=D4 brushed on Wednesday.
Sterling had taken a hit on expectations that British Prime
Minister Theresa May will again fail to get her Brexit deal
approved and could soon face a leadership challenge, adding to
uncertainties. (Editing by Simon Cameron-Moore)

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