October 14, 2019 / 1:49 PM / 4 months ago

FOREX-Safe havens gain as U.S.-China trade deal hopes ebb

    * Safe havens U.S. dollar, Swiss franc, yen gain
    * Sterling falls as EU, Britain pursue Brexit deal
    * Asian and U.S. holidays seen limiting trade volumes 

 (Updates trading and comments to U.S. market open, new byline,
changes dateline, previous LONDON)
    By Karen Brettell
    NEW YORK, Oct 14 (Reuters) - Safe-haven currencies including
the U.S. dollar gained on Monday as optimism over a trade deal
between the United States and China ebbed.
    The greenback, Swiss franc and Japanese yen all weakened on
Friday as optimism over the trade talks, together with the
European Union and Britain restarting Brexit negotiations,
encouraged investors into riskier assets.
    U.S. President Donald Trump on Friday outlined the first
phase of a deal to end the trade war and suspended a threatened
tariff hike, but officials on both sides said much more work
needed to be done before an accord could be agreed.
    The safe havens gained on Monday, however, after Bloomberg
News reported that China wants more talks as soon as the end of
October to hammer out the details of the “phase one” deal.

    U.S. Treasury Secretary Steven Mnuchin also said on Monday
that an additional round of tariffs on Chinese imports will
likely be imposed if a trade deal with China has not been
reached by the time they are set to start, but added that he
expected the agreement to go through.
    Analysts said the partial deal between the world's two
largest economies appeared to lack substance with limited
progress on structural issues such as technology transfers.
    Manuel Oliveri, an analyst at Credit Agricole, said the
announcements so far did not amount to "a broad-based trade
deal" that would justify last week's market optimism.
    The dollar index against a basket of six major currencies
 gained 0.20 percent to 98.501, up from a three-week low
of 98.197 reached on Friday.
    Trading volumes are likely lighter than usual with Tokyo's
market closed for a public holiday and a holiday in the United
States for Columbus Day.
    Emerging market currencies and those closely linked to broad
risk sentiment, such as the Australian dollar and Swedish crown,
slipped, after rallying at the end of last week.
    Sterling also dropped against both the dollar and euro
, after Britain and the EU stressed over the
weekend that there was a long way to go before they could agree
a Brexit deal.
    Sterling surged late last week after London and Brussels
announced "intense" negotiations to try and agree a Brexit deal
before Oct. 31.
    Currency bid prices at 9:27AM (1327 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1020        $1.1040     -0.18%         -3.91%      +1.1048     +1.1014
 Dollar/Yen       JPY=        108.3100       108.4000    -0.08%         -1.77%      +108.5200   +108.0500
 Euro/Yen         EURJPY=     119.38         119.62      -0.20%         -5.42%      +119.6900   +119.2000
 Dollar/Swiss     CHF=        0.9964         0.9965      -0.01%         +1.54%      +0.9983     +0.9945
 Sterling/Dollar  GBP=        1.2577         1.2647      -0.55%         -1.41%      +1.2653     +1.2518
 Dollar/Canadian  CAD=        1.3225         1.3196      +0.22%         -3.02%      +1.3227     +1.3192
 Australian/Doll  AUD=        0.6750         0.6787      -0.55%         -4.26%      +0.6801     +0.6752
 Euro/Swiss       EURCHF=     1.0983         1.0998      -0.14%         -2.41%      +1.1010     +1.0972
 Euro/Sterling    EURGBP=     0.8762         0.8729      +0.38%         -2.47%      +0.8811     +0.8726
 NZ               NZD=        0.6280         0.6336      -0.88%         -6.51%      +0.6335     +0.6282
 Dollar/Norway    NOK=        9.1207         9.0791      +0.46%         +5.58%      +9.1239     +9.0738
 Euro/Norway      EURNOK=     10.0529        10.0187     +0.34%         +1.48%      +10.0707    +10.0161
 Dollar/Sweden    SEK=        9.8333         9.8029      +0.16%         +9.70%      +9.8608     +9.8045
 Euro/Sweden      EURSEK=     10.8384        10.8213     +0.16%         +5.60%      +10.8670    +10.8183

 (Reporting by Karen Brettell; Additional reporting by Tommy
Wilkes in London; Editing by Andrea Ricci)
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