FOREX-Dollar falls on mixed trade war news

Published 11/11/2019, 15:57
Updated 11/11/2019, 16:01
FOREX-Dollar falls on mixed trade war news
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(New throughout; updates dateline, previous LONDON)

By Kate Duguid

NEW YORK, Nov 11 (Reuters) - The U.S. dollar was broadly

lower on Monday after President Donald Trump said over the

weekend that trade talks with China were moving along "very

nicely," but that the United States would only make a deal with

Beijing if it was right for America.

Trump on Saturday told reporters at Joint Base Andrews that

the talks had moved more slowly than he would have liked, but

China wanted a deal more than he did. The president also said there had been incorrect reporting

about U.S. willingness to lift tariffs on Chinese goods.

Officials from China and the United States last week said the

two countries had agreed to roll back tariffs already in place

in a "phase one" trade deal. The dollar index .DXY was down 0.18% last at 98.176.

Against the euro EUR= , the dollar was 0.14% weaker at $1.103.

Mixed trade war headlines have left investors frustrated and

confused, said Craig Erlam, senior market analyst at OANDA Corp.

"We swing from optimism to pessimism on a daily basis and never

feel any the wiser.

"This time it was Trump's turn to pour cold water on

suggestions that not only is a deal in the offing, but it comes

with the cherry on top that is the removal of tariffs. It's

difficult to say who stands to lose more from this deal falling

apart but this last-minute jostling does not inspire

confidence," Erlam said.

Although the U.S. dollar often operates as a safe-haven

asset in moments of political and economic uncertainty, it was

lower on Monday against the Japanese yen and the Swiss franc,

other traditional safe havens.

The dollar was 0.27% weaker against the Japanese currency,

last buying 108.98 yen JPY= , and 0.36% weaker against the

franc CHF= , at 0.994 per dollar. Those safe havens were in

favor as market participants reacted to the violent response to

protests in Hong Kong, where police fired live rounds at

protesters, with cable television and other media reporting at

least one person being wounded. The Chinese yuan weakened 0.36% to 7.011 per dollar in

offshore trade CNH= .

Disappointing economic data also hurt sentiment toward the

yuan, as China's producer prices fell the most in more than

three years in October, National Bureau of Statistics data

showed on Saturday, while the country's consumer prices rose at

their fastest pace in almost eight years. The British pound was up 0.84% at $1.288 GBP= despite the

warning issued by Moody's Investors Service on Friday that it

might again cut its rating of Britain's sovereign debt.

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