* Trump says trade deal in "final throes"
* Euro/dollar heads back towards $1.10
* Swedish crown hits 4-month high vs euro
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Adds details on Swedish crown, updates prices)
By Tommy Wilkes
LONDON, Nov 27 (Reuters) - The dollar pushed higher on
Wednesday and flirted with the $1.10 level against the euro,
boosted by yet more talk of a deal to resolve the U.S.-China
trade dispute, while volatility in major currencies remained
severely suppressed.
The greenback, which this week has risen in line with the
more positive tone in trade negotiations, also increased versus
the yen.
Wednesday sees little new data released in the euro zone but
some revisions in the United States ahead of Thursday's
Thanksgiving holiday.
"Everything all told, the U.S. data is more likely to
support the dollar, so that EUR-USD might well drop below the
$1.10 mark again today," Commerzbank analysts said in a note.
Euro/dollar volatility remains at near record low levels and
the currency pair is largely stuck in tight trading ranges in
the absence of major catalysts such as monetary policy shifts.
Andreas Larsen, an FX strategist at Nordea, also noted on
Twitter that one-day realised volatility in euro/dollar on
Tuesday hit a more than 20-year low.
One and three-month implied volatility - a gauge of expected
price swings - in euro/dollar on Tuesday fell to their lowest
level on record, indicating that investors do not expect
significant movement in the coming months.
While investors are taking U.S. President Donald Trump at
his word that Washington was in the "final throes" of work on a
trade deal with Beijing, many have struggled to decide what it
means for currencies. Many analysts say investors cannot make up their minds on
whether trade optimism and a buoyant risk-on mood is a positive
for the safe-haven dollar, especially as the Federal Reserve has
been cutting interest rates.
"We've been risk-on for a few days now and euro-dollar is
down at $1.10. They've bought the dollar whereas at times in the
past they've done the reverse," said Neil Mellor, an analyst at
BNY Mellon.
The euro slipped 0.1 percent to $1.1004, close to a two-week
low of $1.0989 EUR=EBS .
Against a basket of currencies, the dollar index rose 0.1
percent to 98.322 .DXY .
The yen, usually bought when investors turn nervous, has
faltered in recent sessions as equity markets soared. The dollar
gained another 0.1 percent to 109.13 yen on Wednesday JPY=EBS .
CROWNS RALLIES
Sweden's hard-hit crown, which is closely linked to the
outlook for global growth and trade, has rebounded in recent
weeks. The crown briefly hit a new four-month high of 10.549
crowns per euro EURSEK=D3 , although against the stronger
dollar SEK=D3 it was down slightly.
The Australian dollar skidded 0.1 percent to $0.6779
AUD=D3 as investors bet on more Reserve Bank of Australia
easing. Westpac Bank Chief Economist Bill Evans said he expected
two central bank interest rate cuts and quantitative easing to
be introduced next year.
Expectations for more policy easing have weighed on the
trade-exposed Aussie despite growing optimism over a U.S.-China
trade agreement .
Sterling recovered slightly to $1.2888 GBP=D3 a day after
polls showed a narrowing in the Conservative Party's lead ahead
of a Dec. 12 general election.
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Euro vs Swedish crown https://tmsnrt.rs/2rswQ42
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(Editing by William Maclean and Ken Ferris)