* Better-than-expected German Ifo business survey fails to
boost
* Pound extends losses on new fears of no-deal Brexit
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Recasts, adds latest news, updates prices)
By Olga Cotaga
LONDON, Dec 18 (Reuters) - The U.S. dollar strengthened on
Wednesday as U.S. economic data suggested the Federal Reserve
was unlikely to cut interest rates further and as liquidity
shrank before the coming holidays.
The dollar rose against the euro, which has struggled to
stay above its 200-day moving average, and against the pound,
which has lost all its election gains on fears Britain could
leave the EU without a trade deal.
Industrial production rebounded in the United States in
November, mainly because a strike by General Motors workers
ended. Money markets are not pricing in a rate cut anytime soon.
FEDWATCH
The dollar is enjoying the "legacy of the data looking
better yesterday and the lack of liquidity towards month and
year end," said Jeremy Stretch, head of currencies at CIBC
Capital Markets.
However, it "looks like we could start to pre-positon for
greenback weakness next year," he said, noting the threat of
domestic politics and "slightly better growth outside of the
U.S."
German business morale rose more than expected in December,
a survey showed on Wednesday, another sign that a manufacturing
slump in Europe's largest economy may be bottoming out after
overall output shrank earlier in the year. Data failed, however, to help the falling euro, which was
last down 0.2% at $1.1124 EUR=EBS , below the 200-day moving
average of $1.11515.
U.S. Trade Representative Robert Lighthizer said on Tuesday
that the United States may raise tariffs on European goods as it
tries to shrink its chronic trade deficit with the continent,
re-igniting worries of the prospects of the export-driven euro.
The U.S. House of Representatives is due to vote on whether
to impeach President Donald Trump later in the day and the
Senate is expected to vote in January.
CIBC's Stretch said this is "a high-profile news story, but
it doesn't have a large impact on the markets."
An index that tracks the dollar against six major currencies
jumped to a six-day high of 97.343 .DXY and was last up at
97.288.
The pound was down by 0.2% at $1.3102 GBP=D3 after falling
to $1.3074, its weakest since Thursday's election gave the
pro-Brexit Conservative Party a majority in parliament.
The pound extended its slide on rekindled fears of a chaotic
exit from the European Union. Having campaigned to "get Brexit
done," Prime Minister Boris Johnson's government on Tuesday set
the end of 2020 as an immovable deadline. The dollar slid below 7 to the Chinese yuan CNH=EBS , as
the United States and China complete phase one of a trade deal,
though worries remain over their future relationship.
"The enthusiasm to the phase one trade deal announced last
week appears to be fading," said Charlie Lay, an analyst at
Commerzbank, adding that "the market's ambivalence is
understandable given that there are few details."
Elsewhere, the New Zealand dollar and the Swedish crown
fell to a one-week low of 0.6555 against the dollar NZD=D3 and
of 10.4960 against the euro EURSEK=D3 respectively.
Euro struggles to break and stay above 200-day moving average
https://tmsnrt.rs/2twn2Hh
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>