RPT-FOREX-Yen at one-week low as renewed trade hopes lift risk sentiment

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* * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Sujata Rao
LONDON, Nov 25 (Reuters) - Positive news flow on the
Sino-U.S. trade front lifted market sentiment on Monday, driving
the Japanese yen to a one-week low and fuelling 0.2-0.3% gains
on trade-focused currencies, from the Norwegian crown to the New
Zealand dollar.
The British pound climbed, too, with opinion polls
continuing to point to a firm lead for Prime Minister Boris
Johnson's Conservative Party, whose election manifesto pledged a
quick Brexit, tax cuts and more spending.
Broader markets remained focused on the likelihood of a
trade agreement between the United States and China by year-end,
which U.S. National Security Adviser Robert O'Brien said was
still possible. The Global Times, a tabloid run by the ruling
Chinese Communist Party's official People's Daily, also said a
'phase one' deal was very close.
"Most of the inferences on the weekend (on the trade front)
were positive and markets seem to have decided to run with it,"
said Colin Asher, senior economist at Mizuho.
U.S. advisor O'Brien said Washington would not turn a blind
eye to events in Hong Kong, where there are fears of a Chinese
crackdown on pro-democracy protests. The democrats scored a
landslide majority in district council elections, raising
pressure on the Chinese-ruled city's leaders to listen to their
demands.
The offshore Chinese yuan nevertheless firmed 0.2% against
the dollar CNH=D3 , in line with other Asian currencies as well
as the Australian and Kiwi dollars, while the safe-haven yen
retreated to a one-week low versus the greenback at 108.89 yen
CNH=D3 AUD=D3 NZD=D3 JP=D3 .
The dollar index edged off the one-week high it hit on
Friday against a basket of currencies .DXY .
Speculators raised net long bets on the dollar to a
five-week high in the week to Nov. 19, data from the U.S.
Commodity Futures Trading Commission showed. But they added to
net short euro positions. The single currency traded just off 10-day lows against the
dollar around $1.101, awaiting Germany's IFO business climate
index at 0900 GMT to see if that would confirm that economic
sentiment is stabilising in the biggest euro zone economy.
Expectations are for the index to have risen to 95 in
November from 94.6 last month.
However, "the IFO will need to be very strong to provide
much of a boost to the euro," ING analysts said, noting that an
uptick in manufacturing activity shown in recent flash PMIs had
been offset by an alarming slowdown in services.
The euro slipped against the Nordic currencies too,
approaching a four-month low versus the Swedish crown at 10.55
crowns EURSEK=D3 and slipping to one-week lows to the
Norwegian currency EURNOK=D3 .
Sterling GBP= rose 0.3% to $1.2868 and by a similar around
against the euro at 85.67 pence EURGBP=D3 .
Markets will focus later in the day on speeches by European
Central Bank's Chief Economist Philip Lane and U.S. Federal
Reserve Chairman Jerome Powell.