October 28, 2019 / 2:15 PM / a month ago

FOREX-Dollar dips on trade optimism, before Fed meeting

    * Trump expects trade deal with China ahead of schedule
    * EU agrees to Brexit delay
    * Federal Reserve expected to cut rates on Wednesday

 (Updates trading and comments to U.S. market open, new byline,
changes dateline, previous LONDON)
    By Karen Brettell
    NEW YORK, Oct 28 (Reuters) - The U.S. dollar slipped on
Monday as optimism that the U.S. and China will reach a trade
deal reduced demand for safe haven currencies, and as investors
waited on the Federal Reserve’s meeting this week.
   U.S. President Donald Trump said on Monday he expected to
sign a significant part of the trade deal with China ahead of
schedule but did not elaborate on the timing.
    The comments come after the U.S. Trade Representative's
office and China's Commerce Ministry said on Friday that U.S.
and Chinese officials are "close to finalizing" some parts of a
trade agreement, with talks to continue.
    The trade war between the U.S. and China has been blamed for
adding to global economic weakness, which in turn has prompted
central banks globally to cut rates.
    "Positive trade headlines continue to support our view that
trade tensions are easing," said Win Thin, global head of FX
strategy at Brown Brothers Harriman.
    The dollar index against a basket of six major currencies
 fell 0.07% to 97.765. The greenback gained 0.19% against
the Swiss franc to 0.9962. The Australian dollar,
which is highly sensitive to the Chinese economy, rose 0.07% to
$0.6827 U.S. dollars.
    Hopes that Britain will reach a deal to leave the European
Union, and avoid a disorderly exit, also boosted risk sentiment
on Monday.
    The European Union on Monday agreed to a 3-month flexible
delay to Britain's departure from the bloc as Prime Minister
Boris Johnson pushes for an election after opponents forced him
to request an extension he had vowed never to ask for.

    The next major U.S. focus is this week’s Federal Reserve
meeting. The U.S. central bank is expected to cut rates when it
concludes its two-day meeting on Wednesday, though investors
will be watching for any indication that further cuts are
    Fed policymakers are deeply divided on whether the U.S.
central bank should continue cutting rates.
    "There's still an awful lot of discrepancy and uncertainty
in the markets as to what the Fed will do next year,” said Jane
Foley, senior FX strategist at Rabobank. "The market will be
looking for clues as to which way that might go."
    Currency bid prices at 9:47AM (1347 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1094        $1.1078     +0.14%         -3.27%      +1.1107     +1.1077
 Dollar/Yen       JPY=        108.9200       108.6400    +0.26%         -1.22%      +108.9300   +108.6700
 Euro/Yen         EURJPY=     120.85         120.38      +0.39%         -4.25%      +120.8700   +120.4200
 Dollar/Swiss     CHF=        0.9962         0.9943      +0.19%         +1.51%      +0.9970     +0.9936
 Sterling/Dollar  GBP=        1.2856         1.2821      +0.27%         +0.78%      +1.2860     +1.2812
 Dollar/Canadian  CAD=        1.3052         1.3058      -0.05%         -4.29%      +1.3078     +1.3048
 Australian/Doll  AUD=        0.6827         0.6822      +0.07%         -3.15%      +0.6833     +0.6812
 Euro/Swiss       EURCHF=     1.1057         1.1017      +0.36%         -1.75%      +1.1058     +1.1015
 Euro/Sterling    EURGBP=     0.8628         0.8634      -0.07%         -3.96%      +0.8652     +0.8629
 NZ               NZD=        0.6339         0.6347      -0.13%         -5.63%      +0.6359     +0.6337
 Dollar/Norway    NOK=        9.1987         9.1950      +0.04%         +6.48%      +9.2244     +9.1800
 Euro/Norway      EURNOK=     10.2068        10.1883     +0.18%         +3.04%      +10.2348    +10.1810
 Dollar/Sweden    SEK=        9.6842         9.6836      +0.15%         +8.04%      +9.6989     +9.6667
 Euro/Sweden      EURSEK=     10.7456        10.7297     +0.15%         +4.69%      +10.7540    +10.7260

 (Additional reporting by Elizabeth Howcroft in London
Editing by Chizu Nomiyama)
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