FOREX-Dollar little changed as trade, data in focus

(New throughout, updates trading and comments to U.S. market
open, new byline, changes dateline, previous LONDON)
By Karen Brettell
NEW YORK, June 11 (Reuters) - The U.S. dollar index was flat
on Tuesday as investors focused on the U.S.-China trade war and
economic data for signals of growth and whether the U.S. Federal
Reserve is likely to cut rates in the coming months.
Risk sentiment improved on Monday, after the United States
reached a deal with Mexico on Friday to avoid imposing tariffs
on the country.
Ongoing tensions between the U.S. and China and the prospect
that U.S. President Trump will look to impose tariffs on Japan
and Europe, however, continues to weigh on risk sentiment.
Investors are concerned that trade wars are harming global
growth, and increasing the likelihood that the U.S. central bank
will need to cut rates to stimulate growth.
Data on Tuesday showed that U.S. producer prices rose for a
second straight month in May, though price pressures remained
tepid. “It certainly plays into the dovish Fed story,” said Win
Thin global, head of currency strategy at Brown Brothers
Harriman in New York.
Consumer Price Index data on Wednesday, which is closely
watched by the Federal Reserve, is the next inflation indicator.
Retail sales on Friday will also be closely watched for
indication on whether tariffs are slowing the economy.
“We know we are in a low inflation environment right now,
but the question is what is the U.S. story in terms of growth,”
said Thin.
This month's G20 summit will help push U.S-China trade talks
forward but no final agreement was expected to be reached there,
U.S. Commerce Secretary Wilbur Ross said on Tuesday.
Trump on Monday said he was ready to impose another round of
punitive tariffs on Chinese imports if he cannot make progress
in trade talks.
Trump on Tuesday accused Europe of devaluing the euro zone's
single currency in a series of tweets that also targeted U.S.
monetary policy with renewed attacks on the U.S. central bank.
"The Euro and other currencies are devalued against the
dollar, putting the U.S. at a big disadvantage," Trump tweeted
without offering any evidence. He also slammed U.S. interest
rates for being too high. Interest rate futures traders are pricing in an almost 80
percent chance of a rate decrease at the Fed's July meeting,
according to the CME Group's FedWatch Tool.

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Currency bid prices at 9:38AM (1338 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1317 $1.1312 +0.04% -1.33% +1.1331 +1.1303
Dollar/Yen JPY= 108.6400 108.4300 +0.19% -1.47% +108.7900 +108.3600
Euro/Yen EURJPY= 122.96 122.66 +0.24% -2.58% +123.1400 +122.6300
Dollar/Swiss CHF= 0.9922 0.9896 +0.26% +1.10% +0.9935 +0.9893
Sterling/Dollar GBP= 1.2706 1.2683 +0.18% -0.40% +1.2727 +1.2671
Dollar/Canadian CAD= 1.3259 1.3265 -0.05% -2.77% +1.3277 +1.3250
Australian/Doll AUD= 0.6960 0.6961 -0.01% -1.26% +0.6966 +0.6948
ar
Euro/Swiss EURCHF= 1.1229 1.1196 +0.29% -0.22% +1.1235 +1.1192
Euro/Sterling EURGBP= 0.8905 0.8916 -0.12% -0.88% +0.8932 +0.8893
NZ NZD= 0.6583 0.6607 -0.36% -1.99% +0.6611 +0.6570
Dollar/Dollar
Dollar/Norway NOK= 8.6277 8.6552 -0.32% -0.13% +8.6852 +8.6199
Euro/Norway EURNOK= 9.7634 9.7938 -0.31% -1.44% +9.8311 +9.7576
Dollar/Sweden SEK= 9.4411 9.4169 +0.29% +5.32% +9.4516 +9.4064
Euro/Sweden EURSEK= 10.6840 10.6530 +0.29% +4.09% +10.6896 +10.6502