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Karen Brettell

Dollar gains as European concerns hurt euro, sterling

17 May 2019

NEW YORK The dollar rose on Friday as concern about next week's European parliamentary elections dented demand for the euro, while the British pound dropped to a four-month low on worries about Britain's exit from the European Union.

FOREX-Dollar gains as European concerns hurt euro, sterling

17 May 2019

(Recasts with stronger dollar, adds quote, updates prices) By Karen Brettell NEW YORK, May 17 The dollar rose on Friday as concern about next week’s European parliamentary elections dented demand for the euro, while the British pound dropped to a four-month low on worries about Britain’s exit from the European Union. The dollar has been favored as a safe-haven currency even as the trade war between the United States and China escalates. The euro has been hurt this week by Italian Deputy Prime Minister Matteo Salvini's comments that European Union rules harm his country. Salvini said on Thursday that he would "tear apart" rules that are "strangling" Italy if his party scores well in the elections. “The market is a little bit concerned about European elections. It seems to be a flow into the dollar as a bastion of last resort,” said Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management in New York. The euro briefly pared losses after the White House said President Donald Trump is delaying a decision for as long as six months on whether to impose tariffs on imported cars and parts to allow for more time for trade talks with the EU and Japan. Sterling fell to the lowest since Jan. 15 after cross-party Brexit talks collapsed and concern grew about the impact Prime Minister Theresa May's likely resignation would have on Britain's exit from the EU. The offshore Chinese yuan fell to its lowest levels since November after China said the United States must show sincerity if it is to hold meaningful trade talks Trump dramatically raised the stakes with a potentially devastating blow to Chinese tech giant Huawei. The world's two largest economies are locked in an increasingly acrimonious trade dispute in which they have imposed escalating tariffs on each other's imports. “Rhetoric from both sides is getting more heated, making a U.S.-China deal seem a long way off,” Win Thin, global head of currency strategy at Brown Brothers Harriman in New York, said in a report. “At this point, this means there will be no high-level negotiations between the two until a potential Trump-Xi (Jinping) meeting at the G20 meeting in late June. This means the next round of tariffs will likely come into play, signaling further escalation and making a deal that much harder,” Thin said. The Australian dollar dropped to its lowest level since Jan. 3 on the escalating trade tensions between the U.S. and China. Data on Friday showed U.S. consumer sentiment jumped to a 15-year high in early May amid growing confidence over the economy's outlook, though much of the surge was recorded before the escalation in the trade war. ======================================================== Currency bid prices at 12:02PM (1602 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1166 $1.1172 -0.05% -2.64% +1.1184 +1.1156 Dollar/Yen JPY= 109.8700 109.8400 +0.03% -0.35% +110.0300 +109.5100 Euro/Yen EURJPY= 122.69 122.73 -0.03% -2.80% +122.9600 +122.2900 Dollar/Swiss CHF= 1.0106 1.0098 +0.08% +2.98% +1.0121 +1.0086 Sterling/Dollar GBP= 1.2725 1.2795 -0.55% -0.25% +1.2807 +1.2720 Dollar/Canadian CAD= 1.3468 1.3457 +0.08% -1.24% +1.3513 +1.3451 Australian/Doll AUD= 0.6870 0.6892 -0.32% -2.54% +0.6897 +0.6872 ar Euro/Swiss EURCHF= 1.1285 1.1284 +0.01% +0.26% +1.1299 +1.1270 Euro/Sterling EURGBP= 0.8772 0.8730 +0.48% -2.36% +0.8778 +0.8728 NZ NZD= 0.6521 0.6534 -0.20% -2.92% +0.6546 +0.6520 Dollar/Dollar Dollar/Norway NOK= 8.7838 8.7440 +0.46% +1.68% +8.7897 +8.7399 Euro/Norway EURNOK= 9.8052 9.7821 +0.24% -1.02% +9.8117 +9.7764 Dollar/Sweden SEK= 9.6410 9.6370 -0.04% +7.55% +9.6536 +9.6178 Euro/Sweden EURSEK= 10.7659 10.7703 -0.04% +4.89% +10.7888 +10.7490 (Reporting by Karen Brettell; editing by Jonathan Oatis and Dan Grebler)

FOREX-Trade tensions boost yen, yuan weakest since Nov

17 May 2019

(New throughout, updates trading and comments to U.S. market open, new byline, changes dateline, previous LONDON) By Karen Brettell NEW YORK, May 17 The safe-haven Japanese yen gained on Friday and the offshore Chinese yuan weakened as escalating trade tensions between the United States and China raised concerns about global growth. The United States must show sincerity if it is to hold meaningful trade talks, China said on Friday, after U.S. President Donald Trump dramatically raised the stakes with a potentially devastating blow to Chinese tech giant Huawei. “Rhetoric from both sides is getting more heated, making a US-China deal seem a long way off,” Win Thin, global head of currency strategy at Brown Brothers Harriman in New York, said in a report. “At this point, this means there will be no high-level negotiations between the two until a potential Trump-Xi (Jinping) meeting at the G20 meeting in late June. This means the next round of tariffs will likely come into play, signaling further escalation and making a deal that much harder,” Thin said. The world's two largest economies are locked in an increasingly acrimonious trade dispute that has seen them level escalating tariffs on each other's imports in the midst of negotiations. The Chinese yuan fell as far as 6.949 against the dollar on Friday, its weakest level since Nov. 30. China's central bank will use foreign exchange intervention and monetary policy tools to ensure the yuan does not weaken past the 7-per-dollar key level in the immediate term, three people familiar with the central bank's thinking said. The Australian dollar dropped to its lowest level since Jan. 3 on the escalating trade tensions. The euro gave back earlier losses against the dollar after the White House said that President Donald Trump is delaying a decision by up to six months on whether to impose tariffs on imported cars and parts to allow for more time for trade talks with the European Union and Japan. The single currency has been hurt this week by Italian Deputy Prime Minister Matteo Salvini's comments that European Union rules harm the country. Salvini said on Thursday that he would "tear apart" rules that are "strangling" Italy if his party scores well in the European parliamentary elections next week. Sterling hit a four-month low on Friday after cross-party Brexit talks collapsed and concern grew about the impact Prime Minister Theresa May's likely resignation would have on Britain's exit from the European Union. ======================================================== Currency bid prices at 9:04AM (1304 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1172 $1.1172 +0.00% -2.59% +1.1184 +1.1159 Dollar/Yen JPY= 109.5800 109.8400 -0.24% -0.62% +110.0300 +109.5100 Euro/Yen EURJPY= 122.44 122.73 -0.24% -2.99% +122.9600 +122.2900 Dollar/Swiss CHF= 1.0101 1.0098 +0.03% +2.92% +1.0113 +1.0086 Sterling/Dollar GBP= 1.2750 1.2795 -0.35% -0.05% +1.2807 +1.2737 Dollar/Canadian CAD= 1.3511 1.3457 +0.40% -0.92% +1.3512 +1.3456 Australian/Doll AUD= 0.6880 0.6892 -0.17% -2.40% +0.6897 +0.6873 ar Euro/Swiss EURCHF= 1.1287 1.1284 +0.03% +0.28% +1.1293 +1.1270 Euro/Sterling EURGBP= 0.8762 0.8730 +0.37% -2.47% +0.8766 +0.8728 NZ NZD= 0.6527 0.6534 -0.11% -2.83% +0.6546 +0.6525 Dollar/Dollar Dollar/Norway NOK= 8.7652 8.7440 +0.24% +1.46% +8.7779 +8.7399 Euro/Norway EURNOK= 9.7961 9.7821 +0.14% -1.13% +9.8012 +9.7764 Dollar/Sweden SEK= 9.6251 9.6370 -0.14% +7.38% +9.6536 +9.6178 Euro/Sweden EURSEK= 10.7553 10.7703 -0.14% +4.79% +10.7888 +10.7490 (Reporting by Karen Brettell; editing by Jonathan Oatis)

Euro dips on election concerns, trade tensions support dollar

16 May 2019

NEW YORK The euro dropped to its lowest level in more than a week against the dollar on Thursday on concerns about next week's European parliamentary elections, while the dollar was buoyed by ongoing U.S.-China trade tensions.

CORRECTED-FOREX-Trade tensions support dollar, euro dips before elections

16 May 2019

(Corrects election timing in first paragraph to next week) By Karen Brettell NEW YORK, May 16 The U.S. dollar rose to its highest levels in a week against a basket of currencies on Thursday as investors focused on trade war tensions, while the euro was hurt by concerns about next week’s European parliamentary elections. The euro was boosted on Wednesday by reports that U.S. President Donald Trump is expected to delay a decision on imposing tariffs on imported cars and parts by up to six months, avoiding opening yet another front in his global trade battles. Until a delay is official, however, investors remain nervous about a new trade war and how it may affect the global economy. The dollar has benefited as a safe-haven currency even as the United States and China are locked in a trade dispute. “The major theme is, is there enough room to fight multiple trade wars at once?,” said Mark McCormick, North American head of FX strategy at TD Securities in Toronto. “We had some green shoots of global economic stabilization the last five months and now I think the concern is whether or not renewed trade wars will sap some of that confidence and whether or not that, along with some of the slowdown we’re seeing in the U.S. economy, will tip the global economy back into a less stable state,” McCormick said. Criticisms of European Union policy by Italian deputy Prime Minister Matteo Salvini has also made investors nervous ahead of elections in the region. Salvini said on Wednesday that EU budget rules were "starving the continent" and must be changed, a day after saying Italy should be ready to break them. "The risk is that we get more populist comments, such as from the Italian Deputy PM. Italy remains one of the factors keeping euro downside risks high," said Credit Agricole FX strategist Manuel Olivieri. The greenback was also bolstered on Thursday by data that showed U.S. homebuilding increased more than expected in April, while a Philadelphia Fed index of business conditions gained in May. The Australian dollar weakened after data showed that the country’s unemployment rate rose to its highest in eight months, cementing views its central bank may be forced to lower borrowing costs soon to stimulate the economy. ======================================================== Currency bid prices at 9:20AM (1320 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1186 $1.1200 -0.13% -2.47% +1.1225 +1.1185 Dollar/Yen JPY= 109.7400 109.5800 +0.15% -0.47% +109.7900 +109.3400 Euro/Yen EURJPY= 122.77 122.74 +0.02% -2.73% +122.9600 +122.5500 Dollar/Swiss CHF= 1.0103 1.0087 +0.16% +2.94% +1.0106 +1.0074 Sterling/Dollar GBP= 1.2798 1.2848 -0.39% +0.32% +1.2861 +1.2794 Dollar/Canadian CAD= 1.3426 1.3437 -0.08% -1.55% +1.3449 +1.3400 Australian/Doll AUD= 0.6910 0.6927 -0.25% -1.97% +0.6933 +0.6894 ar Euro/Swiss EURCHF= 1.1304 1.1296 +0.07% +0.44% +1.1317 +1.1292 Euro/Sterling EURGBP= 0.8739 0.8721 +0.21% -2.73% +0.8749 +0.8715 NZ NZD= 0.6561 0.6561 +0.00% -2.32% +0.6582 +0.6546 Dollar/Dollar Dollar/Norway NOK= 8.7157 8.7141 +0.02% +0.89% +8.7231 +8.6830 Euro/Norway EURNOK= 9.7512 9.7633 -0.12% -1.56% +9.7780 +9.7347 Dollar/Sweden SEK= 9.6131 9.5991 +0.02% +7.24% +9.6166 +9.5780 Euro/Sweden EURSEK= 10.7550 10.7530 +0.02% +4.78% +10.7745 +10.7381 (Additional reporting by Abhinav Ramnarayan in London; editing by Jonathan Oatis)

Euro boosted by reports auto tariffs will be delayed

16 May 2019

NEW YORK The euro retraced earlier losses against the U.S. dollar on Wednesday after administration officials said that U.S. President Donald Trump is expected to delay a decision on tariffs on imported cars and parts by up to six months.

FOREX-Euro retraces losses on report auto tariffs will be delayed

15 May 2019

(Adds data, Trump on auto tariffs, updates prices) By Karen Brettell NEW YORK, May 15 The euro retraced earlier losses against the U.S. dollar on Wednesday after administration officials said that U.S. President Donald Trump is expected to delay a decision on tariffs on imported cars and parts by up to six months. A formal announcement is expected by Saturday, the due date for Trump to make a decision on recommendations by the Commerce Department to protect the U.S. auto industry from imports on national security grounds. “The assumption is that that’s going to delay any tariffs on European autos, which has been the issue hanging over the broader trade talks,” said Shaun Osborne, chief FX strategist at Scotiabank in Toronto. “Perhaps Trump has decided it’s best to wage a trade war on one front only at the moment and concentrate on China,” Osborne said. The greenback has benefited from its safe-haven status even as the United States and China remain locked in a trade war. Trump threatened higher tariffs on billions of dollars of Chinese imports last week, and Beijing responded with planned tariff hikes of its own on Monday. The euro had weakened earlier on Wednesday as Italy’s Deputy Prime Minister Matteo Salvini criticized European Union rules for the second day. "If there are European rules that are starving a continent, these rules must be changed," Salvini said on Wednesday, a day after he said the government was ready to breach EU rules that seek to limit budget deficits and curb excessive debt. “There are definitely concerns heading into the European elections next week that there could be some more rhetoric against the EU,” said Erik Nelson, a currency strategist at Wells Fargo in New York. Salvini’s comments overshadowed data showing Germany’s economy returned to growth in the March quarter as householders spent more freely and construction activity picked up. Safe-haven currencies including the Japanese yen and U.S. dollar were also boosted after weak economic data in China raised new concerns about growth there. China reported surprisingly weaker growth in retail sales and industrial output for April, adding pressure on Beijing to roll out more monetary stimulus as the trade war with the United States escalates. “This data preceded the latest round of tariffs, so that’s a bit worrying that even before this flared up we saw some weakness,” Nelson said. U.S. data on Wednesday showed that U.S. retail sales unexpectedly fell in April as households cut back on purchases of motor vehicles and a range of other goods while U.S. industrial production also dropped last month. ======================================================== Currency bid prices at 11:22AM (1522 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1200 $1.1203 -0.03% -2.36% +1.1224 +1.1178 Dollar/Yen JPY= 109.4900 109.5900 -0.09% -0.70% +109.7000 +109.1600 Euro/Yen EURJPY= 122.64 122.79 -0.12% -2.84% +123.0900 +122.1000 Dollar/Swiss CHF= 1.0085 1.0085 +0.00% +2.76% +1.0091 +1.0056 Sterling/Dollar GBP= 1.2864 1.2904 -0.31% +0.84% +1.2922 +1.2827 Dollar/Canadian CAD= 1.3449 1.3459 -0.07% -1.38% +1.3493 +1.3441 Australian/Doll AUD= 0.6926 0.6941 -0.22% -1.76% +0.6947 +0.6915 ar Euro/Swiss EURCHF= 1.1296 1.1301 -0.04% +0.36% +1.1313 +1.1265 Euro/Sterling EURGBP= 0.8704 0.8680 +0.28% -3.12% +0.8737 +0.8669 NZ NZD= 0.6557 0.6574 -0.26% -2.38% +0.6577 +0.6551 Dollar/Dollar Dollar/Norway NOK= 8.7247 8.7442 -0.22% +1.00% +8.7628 +8.7098 Euro/Norway EURNOK= 9.7744 9.7983 -0.24% -1.33% +9.8186 +9.7705 Dollar/Sweden SEK= 9.6068 9.6022 +0.00% +7.17% +9.6383 +9.5775 Euro/Sweden EURSEK= 10.7618 10.7615 +0.00% +4.85% +10.7822 +10.7470 (Additional reporting by Abhinav Ramnarayan and Saikat Chatterjee in London; Editing by Bernadette Baum and James Dalgleish)

FOREX-Weak Chinese data bolsters safe-haven currencies

15 May 2019

(New throughout, updates trading and comments to U.S. market open, new byline, changes dateline, previous LONDON) By Karen Brettell NEW YORK, May 15 Safe-haven currencies, the Japanese yen and Swiss franc, gained on Wednesday after weak economic data in China raised new concerns about growth in the country. China reported surprisingly weaker growth in retail sales and industrial output for April, adding pressure on Beijing to roll out more monetary stimulus as a trade war with the United States escalates. “The Chinese data is the big market driver today,” said Erik Nelson, a currency strategist at Wells Fargo in New York. “This data preceded the latest round of tariffs, so that’s a bit worrying that even before this flared up we saw some weakness.” The greenback also benefited from its safe-haven status even as the United States and China remain locked in a trade war. President Donald Trump threatened higher tariffs on billions of dollars of Chinese imports last week, and Beijing responded with planned tariff hikes of its own on Monday. The euro weakened as Italy’s Deputy Prime Minister Matteo Salvini criticized European Union rules for the second day. "If there are European rules that are starving a continent, these rules must be changed," Salvini said on Wednesday, a day after he said the government was ready to breach EU rules that seek to limit budget deficits and curb excessive debt. “There are definitely concerns heading into the European elections next week that there could be some more rhetoric against the EU,” Nelson said. Weakening in the single currency came despite data showing that Germany’s economy returned to growth in the March quarter as householders spent more freely and construction activity picked up. The greenback briefly dipped against the euro after data showed that U.S. retail sales unexpectedly fell in April as households cut back on purchases of motor vehicles and a range of other goods. The Aussie dollar dropped to its lowest level since Jan. 3 when a flash crash in the foreign exchange markets rocked major currencies. The Aussie is often seen as a proxy for Chinese growth because of Australia's export-reliant economy and China being the country's main destination for its commodities. Domestic data added to the woes, with the pace of growth in Australian wages stagnating. Sterling dropped to its lowest since Feb. 15 amid continuing worry over Britain’s exit from the European Union. There is an under-appreciation of the risk Britain could leave the European Union without a deal later this year, Brexit minister Stephen Barclay said on Wednesday. ======================================================== Currency bid prices at 9:13AM (1313 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1182 $1.1203 -0.19% -2.50% +1.1221 +1.1178 Dollar/Yen JPY= 109.2800 109.5900 -0.28% -0.89% +109.7000 +109.1900 Euro/Yen EURJPY= 122.21 122.79 -0.47% -3.18% +122.9900 +122.1000 Dollar/Swiss CHF= 1.0078 1.0085 -0.07% +2.69% +1.0091 +1.0056 Sterling/Dollar GBP= 1.2855 1.2904 -0.38% +0.77% +1.2922 +1.2853 Dollar/Canadian CAD= 1.3475 1.3459 +0.12% -1.19% +1.3493 +1.3456 Australian/Doll AUD= 0.6919 0.6941 -0.32% -1.84% +0.6947 +0.6915 ar Euro/Swiss EURCHF= 1.1272 1.1301 -0.26% +0.16% +1.1311 +1.1265 Euro/Sterling EURGBP= 0.8698 0.8680 +0.21% -3.18% +0.8700 +0.8669 NZ NZD= 0.6556 0.6574 -0.27% -2.40% +0.6577 +0.6551 Dollar/Dollar Dollar/Norway NOK= 8.7529 8.7442 +0.10% +1.32% +8.7628 +8.7310 Euro/Norway EURNOK= 9.7891 9.7983 -0.09% -1.18% +9.8186 +9.7869 Dollar/Sweden SEK= 9.6283 9.6022 +0.06% +7.42% +9.6383 +9.5957 Euro/Sweden EURSEK= 10.7680 10.7615 +0.06% +4.91% +10.7822 +10.7571 (Additional reporting by Abhinav Ramnarayan and Saikat Chatterjee in London; Editing by Bernadette Baum)

Italian concerns weigh down euro, dollar buoyed by trade hopes

14 May 2019

NEW YORK The euro slid against the dollar on Tuesday after Italy’s deputy prime minister said the country is ready to break European Union budget rules on debt levels if necessary to spur employment.

FOREX-Italian concerns weigh down euro after Salvini comments

14 May 2019

* Italy's Salvini says may break EU rules * Trump says trade deal with China still likely * Sterling slips on weak wage growth (New throughout, updates trading and comments to U.S. market open, new byline, changes dateline, previous LONDON) By Karen Brettell NEW YORK, May 14 The euro slid against the dollar on Tuesday after Italy’s deputy prime minister said the country is ready to break European Union budget rules if necessary to spur employment. "If we need to break some limits, like the 3% (deficit-to-GDP ratio) or 130-140% (debt-to-GDP ratio), we're ready to go ahead. Until we arrive at 5% unemployment, we will spend everything that we should and if someone in Brussels complains, that won't be our concern," Matteo Salvini said. “There are renewed Italian concerns,” said Win Thin, global head of currency strategy at Brown Brothers Harriman in New York. “It looks like things are coming back to a head.” The dollar was also buoyed as U.S. and Chinese officials said the two countries would continue to negotiate on trade. U.S. President Donald Trump on Tuesday defended his trade war with China as tensions escalated and markets extended their losses, promising a deal with Chinese President Xi Jinping soon, even as fears escalated about a protracted battle. Continuing uncertainty over whether an agreement is likely should support safe-haven currencies, including the dollar and the Japanese yen, said Thin. “There is too much uncertainty," Thin said. "I think things will get worse before they get better.” Investors are also focused on whether Trump will impose tariffs on imported cars and auto parts as talks continue with the EU and Japan. Trump received a "Section 232" investigation report in February, widely believed to have concluded that car and auto part imports pose a risk to national security. The president's 90-day deliberation period is due to end on Saturday. Sterling dipped to two-week lows as British employment data showed wage growth in the quarter ending March was lower than expected, signaling the possible start of a turbulent period for the broader economy. The British currency is also being weighed down by concerns about Britain’s exit from the European Union. Britain's opposition Labour Party said on Tuesday that Prime Minister Theresa May had not yet made a shift in Brexit talks and that the party was concerned a future Conservative leader could renege on any promises made by the current government. ======================================================== Currency bid prices at 8:20AM (1220 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1212 $1.1223 -0.10% -2.24% +1.1246 +1.1209 Dollar/Yen JPY= 109.5500 109.3000 +0.23% -0.64% +109.7700 +109.1500 Euro/Yen EURJPY= 122.82 122.64 +0.15% -2.69% +123.3900 +122.5900 Dollar/Swiss CHF= 1.0075 1.0063 +0.12% +2.66% +1.0085 +1.0052 Sterling/Dollar GBP= 1.2933 1.2955 -0.17% +1.38% +1.2970 +1.2924 Dollar/Canadian CAD= 1.3473 1.3475 -0.01% -1.20% +1.3487 +1.3455 Australian/Doll AUD= 0.6941 0.6943 -0.03% -1.52% +0.6959 +0.6940 ar Euro/Swiss EURCHF= 1.1298 1.1294 +0.04% +0.39% +1.1329 +1.1289 Euro/Sterling EURGBP= 0.8668 0.8659 +0.10% -3.53% +0.8691 +0.8655 NZ NZD= 0.6577 0.6566 +0.17% -2.08% +0.6590 +0.6565 Dollar/Dollar Dollar/Norway NOK= 8.7379 8.7678 -0.34% +1.15% +8.7707 +8.7195 Euro/Norway EURNOK= 9.8006 9.8375 -0.38% -1.06% +9.8496 +9.7956 Dollar/Sweden SEK= 9.6139 9.6354 -0.33% +7.25% +9.6448 +9.5857 Euro/Sweden EURSEK= 10.7803 10.8160 -0.33% +5.03% +10.8260 +10.7710 (Reporting by Karen Brettell; editing by Jonathan Oatis)

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