June 23, 2020 / 2:32 PM / 18 days ago

FOREX-Euro rises on positive data, U.S. says China trade deal still on track

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

 (Adds details, updates prices; changes byline, dateline;
previous LONDON)
    By Karen Brettell
    NEW YORK, June 23 (Reuters) - The euro jumped to one-week
high following positive economic data on Tuesday and higher-risk
currencies, including the Australian dollar, were boosted after
U.S. officials confirmed that the U.S.-China trade deal is
intact.
    The euro bounced after data showed that a downturn in the
euro zone economy eased again this month. IHS Markit's Flash
Composite Purchasing Managers' Index (PMI), seen as a good gauge
of economic health, recovered to 47.5 from May's 31.9, moving
closer to the 50 mark separating growth from contraction. In
April it was a record low 13.6.
    “The story in the G10 is the euro zone PMIs coming in above
expectations,” said Vassili Serebriakov, an FX and macro
strategist at UBS in New York. They are encouraging “in the
sense that growth is rebounding a bit faster than markets
expected.”
    Investors are weighing better-than-expected economic data
against the growth in new cases of the coronavirus in certain
areas across the globe.
    The greenback had briefly gained overnight on safety buying
after White House trade adviser Peter Navarro said the
U.S.-China trade pact was "over."
    Risk sentiment was then boosted after he walked back those
remarks, saying they were taken out of context. U.S. President
Donald Trump later confirmed in a tweet that the deal with China
was "fully intact."
    "We expect limited further fallout, with President Trump
expected to remain committed to the phase one trade deal in the
run up to the election," said Lee Harman, currency analyst at
MUFG.
    "However, last night’s price action does highlight that the
FX market remains sensitive to trade policy uncertainty. It
remains a potential trigger for higher volatility," he said.
    The euro was last up 0.67% on the day at $1.1333,
after getting as high as $1.1337, the highest since June 16.
    The Australian dollar jumped 0.75% to $0.6957, after
earlier reaching $0.6973, also the highest since June 16.
    The dollar 0.59% against the yen to 106.24 yen, the
weakest since May 8.
    U.S. data on Tuesday showed that U.S. business activity
contracted for a fifth straight month in June, while sales of
new U.S. single-family homes increased more than expected in
May.
    
    
    Currency bid prices at 10:01AM (1401 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1333        $1.1258     +0.67%         +1.10%      +1.1337     +1.1234
 Dollar/Yen       JPY=        106.2400       106.8700    -0.59%         -2.41%      +107.2100   +106.2500
 Euro/Yen         EURJPY=     120.43         120.36      +0.06%         -1.25%      +121.0900   +119.9300
 Dollar/Swiss     CHF=        0.9433         0.9475      -0.44%         -2.53%      +0.9493     +0.9435
 Sterling/Dollar  GBP=        1.2487         1.2461      +0.21%         -5.82%      +1.2511     +1.2433
 Dollar/Canadian  CAD=        1.3510         1.3520      -0.07%         +4.04%      +1.3570     +1.3486
 Australian/Doll  AUD=        0.6957         0.6905      +0.75%         -0.91%      +0.6973     +0.6859
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0690         1.0670      +0.19%         -1.49%      +1.0711     +1.0661
 Euro/Sterling    EURGBP=     0.9072         0.9029      +0.48%         +7.31%      +0.9078     +0.9020
 NZ               NZD=        0.6517         0.6478      +0.60%         -3.25%      +0.6524     +0.6438
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.4811         9.6015      -1.25%         +8.00%      +9.6858     +9.4739
 Euro/Norway      EURNOK=     10.7446        10.8018     -0.53%         +9.22%      +10.8890    +10.7258
 Dollar/Sweden    SEK=        9.2679         9.3687      -0.40%         -0.85%      +9.4137     +9.2680
 Euro/Sweden      EURSEK=     10.5050        10.5476     -0.40%         +0.32%      +10.5795    +10.4918
 
    
 (Additional reporting by Olga Cotaga in London; Editing by Dan
Grebler)
  
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