FOREX-Dollar edges higher as trade deal uncertainty supports

* Sterling range-bound until election
* Swedish crown rises to four-month high vs euro

(Recasts throughout, updates rates, adds comments post-U.S.
market open; new byline, changes dateline; previous LONDON)
By Saqib Iqbal Ahmed
NEW YORK, Nov 29 (Reuters) - The dollar edged higher to a
6-week peak against a basket of currencies on Friday as a still
unsigned partial U.S.-China trade deal kept investors on edge
and the shortened holiday week limited currency moves.
The dollar index .DXY , which compares the greenback
against six other major currencies, was up 0.07% at 98.438.
Earlier in the session, the index rose as high as 98.544, its
highest since Oct. 15.
China warned the United States on Thursday it would take
"firm countermeasures" in response to U.S. law backing
anti-government protesters in Hong Kong, and said attempts to
interfere in the Chinese-ruled city were doomed to fail.
U.S. President Donald Trump on Wednesday signed into law
congressional legislation which supported the protesters,
despite angry objections from Beijing, with which he is seeking
a deal to end a damaging trade war.
"Market activity looks on track for another quiet session
after yesterday's Thanksgiving break lull," Shaun Osborne, chief
FX strategist at Scotiabank in Toronto, said in a note.
"Chinese authorities have yet to respond to President
Trump's signing of the Hong Kong bill and, alongside radio
silence on the trade talk front, the FX market tone appears
mildly pro risk," Osborne said.
Against the Japanese yen JPY= , which tends to attract
investors during times of geopolitical or financial stress as
Japan is the world's biggest creditor nation, the dollar rose
0.06%.
The U.S. currency has also found support recently from
positive economic data that show the world's biggest economy is
on a firm footing.
U.S. economic growth picked up slightly in the third
quarter, data showed on Wednesday, in contrast to other
indicators pointing to a slowdown in global activity.
The Federal Reserve also flagged an upbeat outlook amid
signs of labour market strength and a possible turnaround in
business investment. The shortened trading week due to the Thanksgiving holiday
in the United States has kept currency moves muted this week.
On Friday, the euro was 0.09% lower against the greenback.
Though data showed eurozone inflation accelerated faster
than expected in November on a rise in food and services prices,
annual inflation rates remained far lower than European Central
Bank expectations. The pound hovered around $1.29 on Friday, showing little
reaction to political headlines, with analysts expecting little
movement in the run-up to the UK general election on Dec. 12.
The Swedish crown reached a four-month high versus the euro
at 10.51 EURSEK=D3 on the back of better-than-expected
third-quarter gross domestic product data. After months of acute
weakness, the Swedish currency started to gain last month.

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