(New throughout, updates trading and comments to U.S. market
open, new byline, changes dateline, previous LONDON)
By Karen Brettell
NEW YORK, June 10 (Reuters) - The dollar gained on Monday
after the United States and Mexico reached a deal to avoid
tariffs, while the euro faltered after sources said European
Central Bank policymakers were open to cutting interest rates
should economic growth slow.
On Friday, Mexico agreed to rapidly expand an asylum program
and deploy security forces to stem the flow of illegal Central
American migrants. This averted a tariff war with
the United States.
“The news that tariffs on Mexico will now be averted is the
main reason the dollar had a good bounce overnight,” said
Richard Franulovich, head of FX strategy at Westpac Banking Corp
in New York.
Last week, the greenback weakened on concerns that trade
disputes wiould hurt the global economy. U.S. jobs data also was
weaker than expected, feeding expectations the Federal Reseve
would cut U.S. interest rates. The U.S.-China trade war and worries that U.S. President
Donald Trump will slap tariffs on Japan and Europe should keep
investors averse to loading up on riskier assets.
“I think the market psyche has been rattled and this is
increasingly going to be a headwind for sentiment,” said
Franulovich. “There is still the outstanding issue with China,
and on top of that many other countries that are in his cross
hairs.”
On Monday, Trump said he believed China will make a trade
deal with Washington. He also said China devalues its currency,
which creates an uneven playing field, and criticized the Fed's
failure to quickly lower U.S. interest rates as "destructive."
The euro dipped after two sources familiar with the ECB's
policy discussions said on Sunday that a rate cut was firmly in
play if the bloc's economy stagnates again after expanding by
0.4% in the first quarter. The single currency rocketed last week after the ECB said
rates would stay "at their present levels" until mid-2020
instead of hinting at rate cuts as some expected.
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Currency bid prices at 9:35AM (1335 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1315 $1.1331 -0.14% -1.34% +1.1330 +1.1291
Dollar/Yen JPY= 108.5200 108.1800 +0.31% -1.58% +108.7100 +108.3800
Euro/Yen EURJPY= 122.80 122.60 +0.16% -2.71% +122.9100 +122.6600
Dollar/Swiss CHF= 0.9897 0.9876 +0.21% +0.85% +0.9917 +0.9877
Sterling/Dollar GBP= 1.2678 1.2734 -0.44% -0.62% +1.2746 +1.2655
Dollar/Canadian CAD= 1.3253 1.3265 -0.09% -2.82% +1.3280 +1.3225
Australian/Doll AUD= 0.6970 0.6998 -0.40% -1.12% +0.7022 +0.6961
ar
Euro/Swiss EURCHF= 1.1199 1.1193 +0.05% -0.49% +1.1209 +1.1183
Euro/Sterling EURGBP= 0.8924 0.8899 +0.28% -0.67% +0.8929 +0.8880
NZ NZD= 0.6624 0.6664 -0.60% -1.38% +0.6678 +0.6613
Dollar/Dollar
Dollar/Norway NOK= 8.6390 8.6243 +0.17% +0.00% +8.6596 +8.6151
Euro/Norway EURNOK= 9.7773 9.7772 +0.00% -1.30% +9.7856 +9.7548
Dollar/Sweden SEK= 9.3982 9.3967 -0.12% +4.85% +9.4382 +9.3970
Euro/Sweden EURSEK= 10.6350 10.6480 -0.12% +3.62% +10.6651 +10.6358