* Trump expects trade deal with China ahead of schedule
* EU agrees to Brexit delay
* Federal Reserve expected to cut rates on Wednesday
(Updates trading and comments to U.S. market open, new byline,
changes dateline, previous LONDON)
By Karen Brettell
NEW YORK, Oct 28 (Reuters) - The U.S. dollar slipped on
Monday as optimism that the U.S. and China will reach a trade
deal reduced demand for safe haven currencies, and as investors
waited on the Federal Reserve's meeting this week.
U.S. President Donald Trump said on Monday he expected to
sign a significant part of the trade deal with China ahead of
schedule but did not elaborate on the timing. The comments come after the U.S. Trade Representative's
office and China's Commerce Ministry said on Friday that U.S.
and Chinese officials are "close to finalizing" some parts of a
trade agreement, with talks to continue. The trade war between the U.S. and China has been blamed for
adding to global economic weakness, which in turn has prompted
central banks globally to cut rates.
"Positive trade headlines continue to support our view that
trade tensions are easing," said Win Thin, global head of FX
strategy at Brown Brothers Harriman.
The dollar index against a basket of six major currencies
.DXY fell 0.07% to 97.765. The greenback gained 0.19% against
the Swiss franc CHF= to 0.9962. The Australian dollar AUD= ,
which is highly sensitive to the Chinese economy, rose 0.07% to
$0.6827 U.S. dollars.
Hopes that Britain will reach a deal to leave the European
Union, and avoid a disorderly exit, also boosted risk sentiment
on Monday.
The European Union on Monday agreed to a 3-month flexible
delay to Britain's departure from the bloc as Prime Minister
Boris Johnson pushes for an election after opponents forced him
to request an extension he had vowed never to ask for.
The next major U.S. focus is this week's Federal Reserve
meeting. The U.S. central bank is expected to cut rates when it
concludes its two-day meeting on Wednesday, though investors
will be watching for any indication that further cuts are
likely.
Fed policymakers are deeply divided on whether the U.S.
central bank should continue cutting rates.
"There's still an awful lot of discrepancy and uncertainty
in the markets as to what the Fed will do next year,” said Jane
Foley, senior FX strategist at Rabobank. "The market will be
looking for clues as to which way that might go."
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Currency bid prices at 9:47AM (1347 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1094 $1.1078 +0.14% -3.27% +1.1107 +1.1077
Dollar/Yen JPY= 108.9200 108.6400 +0.26% -1.22% +108.9300 +108.6700
Euro/Yen EURJPY= 120.85 120.38 +0.39% -4.25% +120.8700 +120.4200
Dollar/Swiss CHF= 0.9962 0.9943 +0.19% +1.51% +0.9970 +0.9936
Sterling/Dollar GBP= 1.2856 1.2821 +0.27% +0.78% +1.2860 +1.2812
Dollar/Canadian CAD= 1.3052 1.3058 -0.05% -4.29% +1.3078 +1.3048
Australian/Doll AUD= 0.6827 0.6822 +0.07% -3.15% +0.6833 +0.6812
Euro/Swiss EURCHF= 1.1057 1.1017 +0.36% -1.75% +1.1058 +1.1015
Euro/Sterling EURGBP= 0.8628 0.8634 -0.07% -3.96% +0.8652 +0.8629
NZ NZD= 0.6339 0.6347 -0.13% -5.63% +0.6359 +0.6337
Dollar/Dollar
Dollar/Norway NOK= 9.1987 9.1950 +0.04% +6.48% +9.2244 +9.1800
Euro/Norway EURNOK= 10.2068 10.1883 +0.18% +3.04% +10.2348 +10.1810
Dollar/Sweden SEK= 9.6842 9.6836 +0.15% +8.04% +9.6989 +9.6667
Euro/Sweden EURSEK= 10.7456 10.7297 +0.15% +4.69% +10.7540 +10.7260