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FOREX-Dollar gains as investors book profits on short positions

Published 11/05/2019, 05:09 AM
Updated 11/05/2019, 05:16 AM
© Reuters.  FOREX-Dollar gains as investors book profits on short positions
EUR/USD
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USD/JPY
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USD/CHF
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DXY
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* U.S.' Ross says preliminary trade deal may be signed this month
* Chinese yuan jumps to 12-week high vs U.S. dollar
* ECB's Lagarde did not speak on monetary policy in 1st speech as bank chief
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Recasts, updates prices, adds new comment)
By Gertrude Chavez-Dreyfuss
NEW YORK, Nov 4 (Reuters) - The dollar rose on Monday, after five straight days of losses, with
investors more guarded despite increased risk appetite that pushed U.S. stocks and Treasury yields higher
on hopes of a U.S.-China trade deal.
The dollar last week had fallen as a safe haven as trade deal expectations with China improved and
U.S. economic data showed more stability, particularly with Friday's generally upbeat U.S. non-farm
payrolls report for October.
"We have seen a little bit of profit-taking on recent short dollar positions," said Edward Moya,
senior market strategist, at OANDA in New York. "There is a growing belief that we are at a major turning
point in the euro to go higher against the dollar as we wait for a key catalyst."
But the greenback's outlook remained bright, especially as the Federal Reserve signaled a pause in its
rate-cutting cycle last week, indicating that it would be more data-dependent when evaluating monetary
policy going forward.
U.S. Commerce Secretary's Wilbur Ross' optimism overnight that a preliminary deal would be signed with
China this month added to increased risk appetite.
Licenses for U.S. companies to sell components to China's Huawei Technologies Co "will be forthcoming
very shortly," Ross said in an interview with Bloomberg published on Sunday. He noted the U.S. government
had received 206 requests for licenses. In May, Huawei, the world's largest telecoms equipment provider, was put under a U.S. blacklist citing
national security concerns.
An index that tracks the dollar against six major currencies .DXY was last up 0.3% at 97.547.
The euro, meanwhile, fell against an overall strong dollar, down 0.3% at $1.1127 EUR= .
Analysts though said that things are looking up for the euro, which traded not too far from its
highest levels in weeks after Ross said in the interview that Washington may not slap tariffs on imported
vehicles after "good conversations" with automakers in the European Union, Japan and Korea.
Tariffs have already been delayed once by six months, and trade experts say that could happen again.
European Central Bank President Christine Lagarde delivered her first address as ECB chief on Monday,
but did not make a comment on monetary policy.
In other currencies, the dollar rose 0.4% against the yen to 108.61 yen JPY= . Against the Swiss
franc, another safe haven, the dollar was up 0.2% at 0.9879 franc CHF= .
The Chinese yuan rose to a 12-week high of 7.0225 against the greenback in the offshore market as risk
sentiment continued to improve. CNH=EBS
World stock markets rallied, denting demand for safe-haven investments, after the world's two largest
economies both said on Friday they had made progress in trade talks. U.S. officials said a Phase-1 deal
could be signed this month. Currency bid prices at 3:47PM (2047 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1127 $1.1165 -0.34% -2.98% +1.1175 +1.1125
Dollar/Yen JPY= 108.6100 108.1700 +0.41% -1.50% +108.6400 +108.1900
Euro/Yen EURJPY= 120.86 120.80 +0.05% -4.25% +121.1000 +120.7800
Dollar/Swiss CHF= 0.9879 0.9854 +0.25% +0.66% +0.9888 +0.9854
Sterling/Dollar GBP= 1.2878 1.2934 -0.43% +0.95% +1.2946 +1.2877
Dollar/Canadian CAD= 1.3148 1.3134 +0.11% -3.59% +1.3160 +1.3129
Australian/Doll AUD= 0.6883 0.6913 -0.43% -2.35% +0.6925 +0.6878
ar
Euro/Swiss EURCHF= 1.0994 1.1003 -0.08% -2.31% +1.1035 +1.0993
Euro/Sterling EURGBP= 0.8639 0.8631 +0.09% -3.84% +0.8646 +0.8622
NZ NZD= 0.6395 0.6426 -0.48% -4.79% +0.6465 +0.6391
Dollar/Dollar
Dollar/Norway NOK= 9.1417 9.0890 +0.58% +5.82% +9.1420 +9.0761
Euro/Norway EURNOK= 10.1711 10.1480 +0.23% +2.68% +10.1794 +10.1330
Dollar/Sweden SEK= 9.6229 9.5621 +0.31% +7.35% +9.6269 +9.5415
Euro/Sweden EURSEK= 10.7074 10.6740 +0.31% +4.32% +10.7156 +10.6610


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Chinese yuan rises to highest since August https://tmsnrt.rs/2JN458l
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