* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Saikat Chatterjee
LONDON, Sept 27 (Reuters) - The euro was pinned at more than
two-year lows on Friday as a steady drip of negative economic
data this week sapped investor demand for the single currency
while the dollar benefited from some quarter-end rebalancing
flows.
Dismal business activity data from the euro area, especially
powerhouse economy Germany at the start of the week, has pushed
European bond yields lower across the board this week with
concerns about a weak economy in Britain also weighing.
GVD/EUR
"We have had a steady drip of weak data from the eurozone
this week and that is highlighting the differences between the
U.S. and Europe where the former is still showing signs of
strength," said Thu Lan Nguyen, an analyst at Commerzbank.
Against the greenback EUR=EBS , the dollar held firm at
$1.0927, just above a May 2017 low of $1.0904.
Versus a basket of its rivals .DXY , the greenback pushed
0.1% higher to 99.21, its highest in more than three weeks.
U.S. data might give a further boost to the broadly firm
dollar with personal income and consumption data due later in
the trading day. Both indicators are expected to show improved
readings, signaling an economy broadly impervious to global
trade tensions.
Strong data in the United States has pushed an economic
surprise data index published by Citigroup .CESIUSD to its
highest since February 2018.
In comparison, a similar index on Europe .CESIEUR has
fallen dramatically in recent days, signaling slowing economic
activity.
Sterling GBP=D3 was the other big loser in London trading
after Bank of England policymaker Michael Saunders hinted at
looser monetary policy if Brexit uncertainty remained prolonged
against a backdrop of disappointing global growth.
The pound weakened 0.3% to a new two-week low of $1.2285 on
Friday as his comments raised expectations that the next move
from the central bank could be a rate cut. Markets are also digesting the impeachment probe launched
into U.S. President Donald Trump and the latest headlines from
the trade dispute between the United States and China.
A whistleblower report released on Thursday said Trump not
only abused his office in attempting to solicit Ukraine's
interference in the 2020 U.S. election, but the White House
tried to "lock down" evidence about it. China's top diplomat said Beijing was willing to buy more
U.S. products. CNBC reported that trade war talks were on track
and scheduled for Oct. 10-11 in Washington, citing people
familiar with the arrangements.
Elsewhere, the dollar eased against the trade-sensitive
Australian AUD=D3 and New Zealand dollars NZD=D3 , which
gently rallied on hopes that next month's U.S.-China trade talks
will bring progress. Moves were slight, though, and neither
strayed far from two-week troughs against the greenback.
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CESI and euro positions https://tmsnrt.rs/2nMxsQe
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