FOREX-Euro up after ZEW survey; dollar near one-week high after weeks of losses

* Fiscal stalemate, US-Sino tensions breathe strength into
dollar
* German ZEW survey pushes up euro 0.4%
* Oil currencies flourish as oil prices rise
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Recasts, updates prices, adds new comment and chart)
By Olga Cotaga
LONDON, Aug 11 (Reuters) - The euro rose on Tuesday after
investor sentiment in Germany improved more than expected in
August, though the U.S. dollar maintained its gains as
U.S.-China tensions and a stalemate in the U.S. Congress over
fiscal stimulus supported safe-haven assets.
Germany's ZEW economic survey of economic sentiment rose to
71.5 from 59.3 points the previous month, far exceeding a
forecast for 58.0 in a Reuters poll of economists. The euro has been bolstered recently by views that the
continent was outperforming the United States and handling the
coronavirus pandemic much better.
Euro/dollar was last up 0.4% at $1.1782 EUR=EBS , after
earlier falling to $1.1722, its weakest since Aug. 4, boosting
the U.S. currency. Before that, the dollar had declined for
seven straight weeks.
The dollar was up 0.1% against the Japanese yen at 106.06
JPY=EBS as U.S. 10-year Treasury yields rose to two-week highs
US10YT=RR before a quarterly U.S. refunding auction on
Tuesday.
"Yields have edged up ... to make room for the supply," Kit
Juckes, macro strategist at Societe Generale, said.
Congressional leaders and Trump administration officials
said on Monday they were ready to resume negotiations on a
coronavirus aid deal. It was unclear whether they could bridge
their differences. Meanwhile, China imposed sanctions on 11 U.S. citizens,
including Republican lawmakers, following Washington's sanctions
on Hong Kong and Chinese officials. And U.S. Treasury Secretary Steven Mnuchin said companies
from China and other countries that do not comply with
accounting standards will be delisted from U.S. stock exchanges
as of the end of 2021. Market response to the U.S.-China conflict has been limited,
but analysts say the confrontations have longer-term
implications.
"The market remains in the expectation that everything will
turn out for the best in the dispute," Commerzbank currency
analyst Antje Praefcke said. But "an agreement has probably
already been priced in accordingly, which means that the dollar
has hardly any more upside potential."
"The euro does not really have that much to offer these
days, either ... The bottom line is that with $1.19 we probably
have seen the highs in euro/dollar for the time being, but at
the same time there are no good reasons for levels below $1.16,"
Praefcke said.
Elsewhere, the Turkish lira stayed near Friday's record low
on concerns about the country's dwindling foreign-exchange
reserves, leading to expectations the central bank will take
more decisive action to stem its fall.
The lira was quoted at 7.2085 per dollar TRYTOM=D3 , just
above Friday's record low of 7.3650.
The Norwegian crown, on the other hand, has flourished as
oil prices rose, becoming the best performer so far this week
alongside the Canadian dollar and the Russian rouble, according
to MUFG analysts.
The crown was last up 0.7% at 8.9710 to the dollar
NOK=D3 , boosted by Monday's central bank report that showed
Norges Bank was one of the least dovish G10 central banks. The
Canadian dollar rose 0.4% at $1.3299 CAD=D3 .
Sterling was up 0.2% at $1.3095 GBP=D3 after Bank of
England Deputy Governor Dave Ramsden said in an interview
published on Tuesday the central bank will step up quantitative
easing if the British economy struggles again. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Eurodollar https://tmsnrt.rs/2FdCJJj
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