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FOREX-Safe havens gain as U.S.-China trade deal hopes ebb
Published at 14/10/2019 at 14:47

* 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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