FOREX-Yen slips on China-U.S. deal hopes, trade-linked currencies rise

(Updates prices, adds U.S. commerce secretary comments)
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Elizabeth Howcroft
Nov 15 (Reuters) - Optimism that the United States and China
may soon end their trade war after White House economic advisor
Larry Kudlow said a deal was "getting close" lifted
trade-exposed currencies on Friday at the expense of safe-haven
assets such as the yen.
Given the lack of concrete detail in Kudlow's comments,
however, markets stayed mostly cautious. "To be blunt, such rhetoric is more or less the same as
Steven Mnuchin (who) said months ago that a deal was "99%
done"," Commerzbank analysts wrote in a note to clients, though
they acknowledged the comments had benefited sentiment.
They said the comments could not be taken seriously until
the trade documents could be assessed and a deal was signed.
The dollar rose 0.3% versus the yen, last at 108.730,
suggesting an end to the past week's dollar-yen slump may be in
sight JPY=EBS . The Swiss franc also weakened 0.1%
versus the dollar CHF=EBS .
The New Zealand and Australian dollars firmed slightly on
the news, the latter rising off four-week lows NZD=D3
AUD=D3 .
While China's commerce ministry said the two countries were
holding "in-depth" discussions and U.S. President Donald Trump
said on Tuesday a deal was close, the Financial Times, citing
sources, said an agreement may not be reached in time to avoid a
new round of U.S. tariffs taking effect on Dec. 15. The U.S. commerce secretary said that Trump has not
indicated any change on the Dec. 15 tariffs, that there will be
another trade call with China on Friday and that there is a
"very high probability" that a trade deal will be reached.
The Norwegian crown strengthened around 0.6% versus the
dollar NOK=D3 and 0.4% versus the euro EURNOK=D3 while the
Swedish crown tracked these gains but to a lesser extent
SEK=D3 EURSEK=D3 . The yuan firmed modestly to the dollar but
was still set to snap a six-week winning streak against the
dollar CNH=EBS .
The Swiss franc - which fell below the 1.09 threshold on
Thursday when risk aversion gripped markets - recovered to trade
at 1.09185 per euro, up 0.2% on the day EURCHF=EBS .
The euro is set for its biggest weekly fall against the
franc since early August, raising speculation the Swiss National
Bank has stepped back from its interventionist policy but the
central bank reiterated on Thursday its willingness to intervene
to stop the currency strengthening too much Euro zone headline inflation slowed in October, in line with
estimates, data released on Friday showed. The euro was last up
0.1% versus the dollar EUR=EBS .