September 11, 2019 / 1:50 PM / 4 days ago

FOREX-Euro dips to one-week low before ECB meeting

    * ECB meeting on Thursday in focus
    * Yen weakens on U.S.-China trade optimism
    * U.S. producer prices rose in August

 (New throughout, updates trading and comments to U.S. market
open, new byline, changes dateline, previous LONDON)
    By Karen Brettell
    NEW YORK, Sept 11 (Reuters) - The euro fell to a one-week
low against the greenback on Wednesday, a day before the
European Central Bank is expected to add further stimulus in a
bid to boost the region's economy.
    ECB policymakers are leaning toward a package that includes
a rate cut, a beefed-up pledge to keep rates low for longer and
compensation for banks over the side-effects of negative rates,
five sources familiar with the discussion said last week.
    Many also favor restarting asset buys, but opposition from
some northern European countries is complicating this issue.

    “The mere thought of easing is probably keeping the euro on
the defensive at the moment,” said Shaun Osborne, chief currency
strategist at Scotiabank in Toronto. However, “we’re not
completely on side with expectations of an aggressive ease… we
think there may be a rebound in the euro after the policy
meeting tomorrow.”
    The euro was last down 0.43% on the day at $1.0995.
    The yen was the weakest since Aug. 1 as optimism over
U.S.-China trade talks boosted risk sentiment and reduced demand
for safe havens.
    China announced its first batch of tariff exemptions for 16
types of U.S. products, days ahead of a planned meeting between
the two countries to try and de-escalate their bruising tariff
row.
    The dollar gained 0.20% to 107.74 yen. 
    Sterling also dipped after a Scottish court ruled on
Wednesday that Prime Minister Boris Johnson's suspension of the
British parliament was unlawful, prompting immediate calls for
lawmakers to return to work as the government and parliament
battle over the future of Brexit.
    The British pound fell 0.19% to $1.2322.
    U.S. data on Wednesday showed that U.S. producer prices
unexpectedly rose in August and underlying producer prices
rebounded, but that data will not change financial market
expectations that the Federal Reserve will cut interest rates
again next week to support a slowing economy.
    This week’s major economic focus will be consumer price
inflation data on Thursday and retail sales data on Friday.
    
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    Currency bid prices at 9:31AM (1331 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.0995        $1.1043     -0.43%         -4.13%      +1.1055     +1.0994
 Dollar/Yen       JPY=        107.7400       107.5300    +0.20%         -2.29%      +107.8400   +107.5100
 Euro/Yen         EURJPY=     118.47         118.75      -0.24%         -6.14%      +119.1700   +118.4600
 Dollar/Swiss     CHF=        0.9936         0.9919      +0.17%         +1.24%      +0.9943     +0.9913
 Sterling/Dollar  GBP=        1.2322         1.2346      -0.19%         -3.41%      +1.2370     +1.2323
 Dollar/Canadian  CAD=        1.3152         1.3149      +0.02%         -3.56%      +1.3160     +1.3140
 Australian/Doll  AUD=        0.6859         0.6859      +0.00%         -2.70%      +0.6884     +0.6849
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0928         1.0953      -0.23%         -2.90%      +1.0970     +1.0925
 Euro/Sterling    EURGBP=     0.8921         0.8939      -0.20%         -0.70%      +0.8951     +0.8908
 NZ               NZD=        0.6410         0.6423      -0.20%         -4.57%      +0.6439     +0.6408
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.9781         8.9543      +0.27%         +3.93%      +8.9819     +8.9393
 Euro/Norway      EURNOK=     9.8728         9.8878      -0.15%         -0.34%      +9.9013     +9.8701
 Dollar/Sweden    SEK=        9.6956         9.6839      -0.31%         +8.16%      +9.6987     +9.6649
 Euro/Sweden      EURSEK=     10.6607        10.6940     -0.31%         +3.87%      +10.6987    +10.6520
 
 (Reporting by Karen Brettell; Editing by Andrea Ricci)
  
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