FOREX-Dollar hangs in limbo with U.S.-China trade deal in focus; Fed minutes eyed

* Investors await minutes from the Fed's latest policy
meeting
* Pound down slightly, but near 6-month high versus USD

(New throughout, updates rates and adds comments post-U.S.
market open; new byline, changes dateline from London)
By Saqib Iqbal Ahmed
NEW YORK, Nov 19 (Reuters) - The U.S. dollar was
little-changed against a basket of currencies on Tuesday as
continued lack of clarity on the fate of the U.S.-China trade
talks kept investors cautious.
The dollar index .DXY , which compares the dollar against
six major currencies, was up 0.01%. The index has shed 0.6% over
the last three sessions.
"It all comes to the uncertainty of trade," said Juan Perez,
senior foreign exchange trader and strategist at Tempus Inc.
Expectations had grown that Washington and Beijing would
sign a so-called "phase one" deal this month to scale back their
16-month-long trade war but those hopes received a setback on
Monday after CNBC reported that China is pessimistic about
agreeing to a deal. The United States and China have been mired in bouts of
tit-for-tat tariffs that have shaken financial markets and
threaten to undermine growth in the global economy.
While the dollar was supported by recent U.S. economic data
meeting lowered expectations, the greenback may be in for some
weakness, said Perez.
"Central banks cannot provide that much to incentivize
stocks any higher, thus risk-appetite is muted and the buck may
continue to lose based on the fact that the American economy is
indeed slower and the Fed's ability to satisfy anyone is in
question," Perez said.
Investors are waiting for the release of minutes on
Wednesday from the Federal Reserve's latest policy meeting,
where the central bank cut interest rates for the third time
this year but signaled there would be no further reductions
unless the economy takes a turn for the worse.
"I expect some revelation of differing in opinion, perhaps
you'll see mentions of concern that cutting interest rates any
further leaves them with very little room to cut if signs of a
recessionary economy manifest themselves," Perez said.
Against the Japanese yen, the dollar was 0.12% weaker on the
day.
Elsewhere, the Australian dollar fell after minutes from a
Reserve Bank of Australia policy meeting showed central bankers
considered cutting rates this month. The Aussie however
recovered to trade up 0.19% against the greenback.
Sterling GBP= was 0.08% weaker, but close to a six-month
high against the U.S. dollar as traders remained broadly of the
view that the ruling Conservative Party will get a majority in
Britain's parliament following the election next month.
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G7 implied volatility https://tmsnrt.rs/2qfLknL
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
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