* Safe havens U.S. dollar, Swiss franc, yen gain
* Sterling falls as EU, Britain pursue Brexit deal
* Asian and U.S. holidays seen limiting trade volumes
(Adds new comment, updates prices, adds byline)
By Karen Brettell and Gertrude Chavez-Dreyfuss
NEW YORK, Oct 14 (Reuters) - The U.S. dollar rose on Monday, after two days of losses, attracting
safe-haven bids, as optimism waned about a trade deal between the United States and China, and investors
fretted about the ongoing twists and turns on Britain's exit from the European Union.
The safe-haven Swiss franc and Japanese yen also firmed slightly against the U.S. dollar.
U.S. President Donald Trump on Friday outlined the first phase of a deal to end the trade war and
suspended a threatened tariff hike, but officials on both sides said much more work needed to be done
before an accord could be agreed. The safe havens gained on Monday after Bloomberg News reported China wants more talks as soon as the
end of October to hammer out the details of the "phase one" deal. U.S. Treasury Secretary Steven Mnuchin also said on Monday an additional round of tariffs on Chinese
imports will likely be imposed if a trade deal with China has not been reached by the time they are set to
start, but added that he expected the agreement to go through. Across the Atlantic, a deal to smooth Britain's departure from the European Union hung in the balance
on Monday after diplomats indicated the bloc wanted more concessions from Prime Minister Boris Johnson and
said a full agreement was unlikely this week. "Caution returned to markets as players realized that nothing has significantly changed with respect
to the U.S.-China trade war and Brexit," said Joe Manimbo, senior market analyst, at Western Union
Business Solutions.
"The fact that nothing materially has changed and that uncertainty remains elevated served as a
reality check and excuse for investors to play it safe," he added.
Analysts said the partial trade deal between the world's two largest economies appeared to lack
substance with limited progress on structural issues such as technology transfers.
In afternoon trading, the dollar index rose 0.2% to 98.468 .DXY m up from a three-week low reached on
Friday.
The dollar was slightly weaker against the yen, however, down 0.1% at 108.36 yen JPY= .
Trading volumes were thinner than usual with Tokyo's market closed for a public holiday and a holiday
in the United States for Columbus Day.
Emerging market currencies and those closely linked to broad risk sentiment, such as the Australian
dollar and Swedish crown, slipped, after rallying at the end of last week.
Sterling also dropped against both the dollar and euro GBP= , EURGBP= after Britain and the EU
stressed over the weekend that there was a long way to go before they could agree a Brexit deal.
Sterling surged late last week after London and Brussels announced "intense" negotiations to try and
agree a Brexit deal before Oct. 31.
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Currency bid prices at 2:28PM (1828 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1029 $1.1040 -0.10% -3.84% +1.1048 +1.1014
Dollar/Yen JPY= 108.3500 108.4000 -0.05% -1.73% +108.5200 +108.0500
Euro/Yen EURJPY= 119.52 119.62 -0.08% -5.31% +119.6900 +119.2000
Dollar/Swiss CHF= 0.9965 0.9965 +0.00% +1.54% +0.9983 +0.9945
Sterling/Dollar GBP= 1.2577 1.2647 -0.55% -1.41% +1.2653 +1.2518
Dollar/Canadian CAD= 1.3230 1.3196 +0.26% -2.98% +1.3234 +1.3192
Australian/Doll AUD= 0.6776 0.6787 -0.16% -3.87% +0.6801 +0.6752
Euro/Swiss EURCHF= 1.0991 1.0998 -0.06% -2.34% +1.1010 +1.0972
Euro/Sterling EURGBP= 0.8767 0.8729 +0.44% -2.42% +0.8811 +0.8716
NZ NZD= 0.6299 0.6336 -0.58% -6.22% +0.6335 +0.6282
Dollar/Dollar
Dollar/Norway NOK= 9.1076 9.0791 +0.31% +5.43% +9.1239 +9.0738
Euro/Norway EURNOK= 10.0470 10.0187 +0.28% +1.42% +10.0707 +10.0161
Dollar/Sweden SEK= 9.8152 9.8029 +0.06% +9.50% +9.8608 +9.8045
Euro/Sweden EURSEK= 10.8275 10.8213 +0.06% +5.49% +10.8670 +10.8183