February 8, 2019 / 3:40 PM / a month ago

CORRECTED-FOREX-Dollar on track for best week in six months

 (Corrects in headline, first graph to read six months, not
seven)
    * Mystery buyer keeps the single currency supported above
$1.13
    * Chinese markets shut for Lunar New Year hold down
volatility
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

    By Richard Leong
    NEW YORK, Feb 8 (Reuters) - The dollar held steady against a
basket of currencies on Friday, keeping it on track for its
strongest weekly gain in six months, as traders piled into the
greenback in a safe-haven move on worries about a weakening
global economy. 
    The euro hovered at a two-week low with support at $1.13.
The single currency was briefly set for its steepest weekly drop
in four months earlier on Friday in the wake of data that showed
 
an economic slowdown in Europe was spreading.
    "The rally that propelled the dollar broadly higher last
year has enjoyed renewed life with U.S. growth remaining solid
while peers abroad lose momentum," said Joe Manimbo, senior
market analyst at Western Union Business Solutions in
Washington.
    At 10:35 a.m. ET (1535 GMT), an index that tracks the
greenback versus the euro, yen, sterling and three other
currencies was up 0.07 percent at 96.570. 
    On the week, the ICE dollar index was up nearly 1 percent,
which would be its biggest weekly increase since a 1.28 percent
jump in the week of Aug. 10, 2018.
    The euro was down 0.05 percent at $1.13320, putting its
weekly decline at about 0.9 percent. 
    The European Commission cut its growth and inflation
forecasts on Thursday as downside surprises to German and
Spanish industrial orders fueled worries about an accelerating
slowdown.
    Those figure have weighed on local bond markets. Core
European government debt yields touched their lowest in over two
years. Benchmark German yields were just 10 basis points away
from zero percent.
    U.S. yields also fell on the week, holding above the lows of
their recent trading range.     
    With Chinese markets closed for Lunar New Year this week,
market volatility declined.
    For example, implied volatility in the euro, or expected
swings in the single currency in a month, fell earlier
this week to its lowest level since Dec. 2017 before rebounding,
according to Refinitiv data.
    Anxieties about the global economy were compounded by
comments from U.S. President Donald Trump indicating he did not
plan to meet with Chinese President Xi Jinping before a March 1
deadline to achieve a trade deal.
    That helped the perceived safe-haven currencies such as the
Japanese yen and the Swiss Franc hold up
against the dollar. The dollar was last at 109.75 yen,
while the greenback was down 0.22 percent at 1.00025 Swiss
franc.
    Sterling was marginally lower at $1.2947. Traders
expect the  pound to remain volatile because of the uncertainty
surrounding Brexit.
========================================================
    Currency bid prices at 10:19AM (1519 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1338        $1.1340     -0.02%         -1.14%      +1.1352     +1.1322
 Dollar/Yen       JPY=        109.7100       109.8000    -0.08%         -0.50%      +109.8900   +109.6600
 Euro/Yen         EURJPY=     124.41         124.52      -0.09%         -1.43%      +124.6900   +124.3100
 Dollar/Swiss     CHF=        0.9999         1.0021      -0.22%         +1.89%      +1.0027     +1.0000
 Sterling/Dollar  GBP=        1.2948         1.2953      -0.04%         +1.50%      +1.2975     +1.2922
 Dollar/Canadian  CAD=        1.3271         1.3306      -0.26%         -2.68%      +1.3328     +1.3232
 Australian/Doll  AUD=        0.7093         0.7099      -0.08%         +0.62%      +0.7105     +0.7061
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1339         1.1364      -0.22%         +0.76%      +1.1370     +1.1339
 Euro/Sterling    EURGBP=     0.8756         0.8757      -0.01%         -2.54%      +0.8765     +0.8743
 NZ               NZD=        0.6748         0.6746      +0.03%         +0.46%      +0.6766     +0.6730
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.6111         8.5946      +0.19%         -0.32%      +8.6287     +8.5869
 Euro/Norway      EURNOK=     9.7648         9.7471      +0.18%         -1.42%      +9.7746     +9.7322
 Dollar/Sweden    SEK=        9.2558         9.2612      -0.05%         +3.26%      +9.2846     +9.2425
 Euro/Sweden      EURSEK=     10.4950        10.5005     -0.05%         +2.25%      +10.5150    +10.4870
 
    
 (Reporting by Richard Leong in NEW YORK
Additional reporting by Saikat Chatterjee in LONDON; Vatsal
Srivastava in SINGAPORE;
Editing by Larry King and Dan Grebler)
  
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