Latest News

UK News

Click Here to read UK News

Forex News

Click Here to read Forex News

Market News

Click Here to read Market News

Irish News
FOREX-Euro steady ahead of Fed, ECB meetings and expected US tariffs
Published at 10/12/2019 at 08:48

* German ZEW survey could turn euro-positive

* Dollar trades flat against most major currencies

* Graphic: World FX rates in 2019

By Olga Cotaga

LONDON, Dec 10 (Reuters) - The euro was little changed versus the dollar on Tuesday as investors were wary of a looming deadline for U.S. tariffs on China, the British election and upcoming Federal Reserve and European Central Bank meetings.

The greenback was neutral against a basket of six other major currencies.

This is "reflecting limited anticipation for a change from both the Fed and ECB meetings this week as well as uncertainty about the Dec. 16 tariff deadline," said ING analysts in a note to clients.

Front of mind is whether Washington will go ahead with a new round of tariffs on Sunday, or whether a deal with China can be reached before then.

White House economic adviser Larry Kudlow said on Friday that the Dec. 15 deadline is still in place, but Agriculture Secretary Sonny Perdue on Monday raised the possibility the tariffs are not imposed.

Against the euro, the dollar was last flat at $1.1072

, and against the Japanese yen the greenback found support after last week's declines, steadying at 108.62 yen. The dollar was also steady against a basket of currencies at 97.605 .

The Chinese yuan -- the most sensitive currency to the U.S. and China trade war -- was also trading neutral against the U.S. dollar in the offshore market, last at 7.0370 .

Soaring inflation in China, ahead even of lofty expectations, had little effect on a market waiting for trade news.

Kit Juckes, macro strategist at Societe Generale, called markets "dull".

Traders will be watching the German ZEW survey due at 1000 GMT. Economists polled by Reuters are expecting that the situation has improved a bit, with the economic sentiment expected at 0 and the current conditions expected at -22.3 for December, compared with -2.1 and -24.7 respectively in November.

Marshall Gittler, strategist at ACLS Global, said the numbers should be "positive" for the euro.

Investors are almost certain the Fed will hold rates steady when its two-day meeting concludes on Wednesday, increasing investors' focus on the outlook and on finding a trade-war truce.

The ECB is likewise expected to keep interest rates steady.

Elsewhere, the pound maintained its recent gains, last at $1.3140 and 84.26 pence against the euro , with market participants still viewing a Conservative Party majority win as the most likely outcome of the general election on Thursday.

(Reporting by Olga Cotaga, editing by Ed Osmond)