* CNBC reports that China is pessimistic about tariffs
* Sterling gains on hopes of Brexit deal
* Trump met with Fed's Powell to discuss rates
(Adds Trump/Powell meeting, updates prices)
By Karen Brettell
NEW YORK, Nov 18 (Reuters) - The dollar dropped against the
yen and the euro on Monday after a media report dashed fresh
hopes that the United States and China are close to reaching a
trade deal.
CNBC reported that China is pessimistic about reaching a
trade deal due to U.S. President Donald Trump's reluctance to
roll back tariffs. It came after Chinese state media Xinhua said on Sunday that
China and the United States had "constructive talks" on trade in
a high-level phone call on Saturday. “I think the market is overreacting to this,” said Mazen
Issa, senior FX strategist at TD Securities in New York. “There
was nothing substantive that came out that suggested the deal is
off or on, it's just the ebb and flow” of the news each day.
Investors are looking for signs that tariffs imposed on each
country's goods will be rolled back, as they are viewed as
harming global economic growth.
Another round of U.S. tariffs on Chinese goods is scheduled
to take effect on Dec. 15.
The yen JPY= gained sharply on the CNBC report, rising to
108.64, from 109.02. It was last 108.60.
The euro EUR= also increased, before making larger gains
after the Federal Reserve said that Trump and Fed Chair Jerome
Powell met at the White House on Monday morning.
"Everything was discussed including interest rates, negative
interest, low inflation, easing, Dollar strength & its effect on
manufacturing, trade with China, E.U. & others, etc.," Trump
tweeted soon after, calling the session "good & cordial."
The single currency was last at $1.1078, after earlier
reaching $1.1090, the highest since Nov. 7.
The single currency has rebounded from a more than two-year
low of 1.0877 on Oct. 1 on optimism a trade deal will be signed
and that the region's economy will improve.
Still analysts say that the European and global economies
need to show more strength to sustain a euro rally.
“One of the things the euro is, is a pro-cyclical or growth
currency and so when global growth performs well you tend to see
the euro perform well, but we're not there yet,” said Issa.
Sterling, meanwhile, was boosted by expectations that the
Conservative (Tory) Party could win a majority in the Dec. 12
election.
It was also supported by British Prime Minister Boris
Johnson saying that all Tory candidates in the election have
pledged to back his Brexit deal, which could open the door to
getting the agreement through parliament. Currency bid prices at 2:22PM (1922 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1078 $1.1050 +0.25% -3.41% +1.1090 +1.1050
Dollar/Yen JPY= 108.6000 108.7300 -0.12% -1.51% +109.0600 +108.5200
Euro/Yen EURJPY= 120.32 120.20 +0.10% -4.67% +120.6800 +120.1000
Dollar/Swiss CHF= 0.9881 0.9897 -0.16% +0.68% +0.9914 +0.9869
Sterling/Dollar GBP= 1.2961 1.2899 +0.48% +1.60% +1.2984 +1.2901
Dollar/Canadian CAD= 1.3204 1.3221 -0.13% -3.18% +1.3235 +1.3199
Australian/Doll AUD= 0.6814 0.6819 -0.07% -3.33% +0.6822 +0.6799
Euro/Swiss EURCHF= 1.0944 1.0937 +0.06% -2.75% +1.0962 +1.0931
Euro/Sterling EURGBP= 0.8545 0.8565 -0.23% -4.89% +0.8566 +0.8523
NZ NZD= 0.6404 0.6399 +0.08% -4.66% +0.6412 +0.6391
Dollar/Dollar
Dollar/Norway NOK= 9.1093 9.0898 +0.21% +5.45% +9.1330 +9.0642
Euro/Norway EURNOK= 10.0917 10.0410 +0.50% +1.87% +10.0995 +10.0272
Dollar/Sweden SEK= 9.6226 9.6390 +0.06% +7.35% +9.6490 +9.6058
Euro/Sweden EURSEK= 10.6617 10.6557 +0.06% +3.87% +10.6697 +10.6430
(Editing by Steve Orlofsky and Lisa Shumaker)