* U.S. consumer confidence plunges in September
* German business morale rose in September
* Pound firms after UK court rules parliament suspension
illegal
(New throughout, updates rates and adds comments post-U.S.
market open; new byline, changes dateline, previous LONDON)
By Saqib Iqbal Ahmed
NEW YORK, Sept 24 (Reuters) - The dollar fell against a
basket of currencies on Tuesday after data showed in U.S.
consumer confidence fell in September, raising worries about the
strength of the U.S. economy.
U.S. consumer confidence fell by the most in nine months,
more than expected, as Americans' economic outlooks darkened in
the face of the U.S.-China trade war, according to a private-
sector report released on Tuesday. The Conference Board, an industry group, said its index of
consumer attitudes fell to 125.1, from an downwardly revised
134.2 the month before.
"It is a worrying early sign that consumer spending, the key
bastion of strength for the U.S. economy in recent months, may
not be immune to the trade war," Michael Pearce, senior U.S.
economist at Capital Economics, said in a note.
The dollar index, which measures the U.S. currency against
six major currencies, was down 0.1%.
The dollar lost ground earlier against the euro after data
showed German business morale rose in September for the first
time in six months. Gains for the euro were capped, since the
German economy is still likely to slip into recession as the
U.S.-China trade conflict and Brexit bite, the Ifo economic
institute said. That followed Monday's euro zone composite flash Purchasing
Managers' Index (PMI) on Monday, which sank to 50.4 in September
from 51.9 in August, lower than all forecasts in a Reuters poll,
which had predicted a reading of 51.9. "The (European) data was quite negative but I think the euro
has stabilized for now and we see it heading up to $1.12 versus
the dollar in the coming months," said Manuel Oliveri, an FX
strategist at Credit Agricole in London.
The euro was up 0.11% at $1.1003.
The dollar found little support from safe-haven flows as
concern about trade talks between Washington and Beijing eased
after Treasury Secretary Steven Mnuchin said on Monday he and
Trade Representative Robert Lighthizer would meet with Chinese
Vice Premier Liu He for talks in early October. "It feels like we are having a risk-on day today," said Minh
Trang, senior currency trader at Silicon Valley Bank in Santa
Clara, California. "A lot of this is really stemming from the
expectation of trade negotiations come October."
Sterling gained after the UK Supreme Court ruled that Prime
Minister Boris Johnson's decision to suspend parliament for five
weeks was unlawful, a decision seen as making less likely
Britain would leave the European Union without a transition
agreement. The pound was up 0.36% against the dollar.
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
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