November 8, 2019 / 3:30 PM / 9 days ago

FOREX-Dollar hits 3-week high; yen rises on renewed trade uncertainty

    * Trump says he has not agreed to roll back tariffs
    * Conflicting U.S.-China trade headlines roil FX market
    * Canada loses jobs; Canadian dollar falls
    * Chinese offshore yuan set for sixth winning week vs. dollar
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Recasts, adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Nov 8 (Reuters) - The dollar rose to a three-week high on Friday, getting some safe-haven
bids, as risk appetite for higher-yielding currencies took a step back amid renewed uncertainty about the
rollback of existing tariffs, a major component of a preliminary U.S.-China trade deal.
    The yen, another safe haven, rose as well.
    U.S. President Donald Trump on Friday further heightened the uncertainty, saying he has not agreed to
roll back tariffs.
    His comments came a day after U.S. and Chinese officials reportedly agreed to roll back tariffs on
each others' goods in a "phase one" trade deal if it is completed. 
    But a report also on Thursday seemed to contradict that news, with multiple sources familiar with the
talks saying the rollback faces fierce internal opposition at the White House and from outside advisers.
The idea of a tariff rollback was not part of the original October "handshake" deal between Chinese Vice
Premier Liu He and Trump, these sources said.
    "We had a lot of  conflicting headlines and reports on the U.S.-China trade negotiations, specifically
whether or not a phase one trade deal ... would include a reduction of existing tariffs," said Brian
Daingerfield, head of G10 FX strategy, at Natwest Markets in Stamford, Connecticut.
    "So that's what really has been driving the market: this underlying uncertainty over whether or not we
will get that rollback," he added.      
    Overall, though, sentiment is likely to remain supportive for the dollar, equities, and other risky
assets as efforts are being made to do a trade deal, which removes a huge risk to the global economic
outlook.
    "The fact that there is some discussion of moving existing tariffs leans more positive," Daingerfield
said.
    White House spokeswoman Stephanie Grisham told Fox Business Network in an interview on Friday that
tariffs could be lifted on Chinese goods if an agreement is reached, but she gave no further details.

    In midmorning trading, the dollar index rose 0.2% to 98.329 after earlier hitting a three-week
high, led by gain against the euro, which dipped 0.2% to $1.1024.
    The dollar, however, fell 0.1% against the safe-haven yen to 109.18 yen
    The Canadian dollar, meanwhile, fell against the greenback after data showed the Canadian job market
stagnated unexpectedly in October, losing 1,800 net positions, while the unemployment rate remained at
5.5%.
    The U.S. dollar was last up 0.5% at C$1.3235.
    "The sharp drop in manufacturing employment confirms the Bank of Canada's fears that weak global
demand is starting to weigh more heavily on the economy," said Stephen Brown, senior Canada economist, at
Capital Economics.
    
    ========================================================
    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=        $1.1021        $1.1049     -0.25%         -3.91%      +1.1055     +1.1022
 Dollar/Yen       JPY=        109.2000       109.2700    -0.06%         -0.96%      +109.4700   +109.1000
 Euro/Yen         EURJPY=     120.38         120.75      -0.31%         -4.63%      +120.8700   +120.3300
 Dollar/Swiss     CHF=        0.9957         0.9948      +0.09%         +1.46%      +0.9972     +0.9944
 Sterling/Dollar  GBP=        1.2811         1.2813      -0.02%         +0.42%      +1.2824     +1.2796
 Dollar/Canadian  CAD=        1.3220         1.3169      +0.39%         -3.06%      +1.3236     +1.3166
 Australian/Doll  AUD=        0.6858         0.6897      -0.57%         -2.71%      +0.6906     +0.6852
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0978         1.0992      -0.13%         -2.45%      +1.1005     +1.0979
 Euro/Sterling    EURGBP=     0.8601         0.8621      -0.23%         -4.26%      +0.8630     +0.8600
 NZ               NZD=        0.6333         0.6364      -0.49%         -5.72%      +0.6381     +0.6326
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.1526         9.1088      +0.48%         +5.95%      +9.1646     +9.1057
 Euro/Norway      EURNOK=     10.0887        10.0645     +0.24%         +1.84%      +10.1185    +10.0618
 Dollar/Sweden    SEK=        9.7048         9.6275      +0.55%         +8.27%      +9.7119     +9.6249
 Euro/Sweden      EURSEK=     10.6963        10.6381     +0.55%         +4.21%      +10.7109    +10.6354
 
 (Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan Oatis)
  
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