FOREX-Dollar hangs in limbo with U.S.-China trade deal in focus; Fed minutes eyed

Published 19/11/2019, 16:40
© Reuters.  FOREX-Dollar hangs in limbo with U.S.-China trade deal in focus; Fed minutes eyed
DXY
-

* Investors await minutes from the Fed's latest policy

meeting

* Pound down slightly, but near 6-month high versus USD

(New throughout, updates rates and adds comments post-U.S.

market open; new byline, changes dateline from London)

By Saqib Iqbal Ahmed

NEW YORK, Nov 19 (Reuters) - The U.S. dollar was

little-changed against a basket of currencies on Tuesday as

continued lack of clarity on the fate of the U.S.-China trade

talks kept investors cautious.

The dollar index .DXY , which compares the dollar against

six major currencies, was up 0.01%. The index has shed 0.6% over

the last three sessions.

"It all comes to the uncertainty of trade," said Juan Perez,

senior foreign exchange trader and strategist at Tempus Inc.

Expectations had grown that Washington and Beijing would

sign a so-called "phase one" deal this month to scale back their

16-month-long trade war but those hopes received a setback on

Monday after CNBC reported that China is pessimistic about

agreeing to a deal. The United States and China have been mired in bouts of

tit-for-tat tariffs that have shaken financial markets and

threaten to undermine growth in the global economy.

While the dollar was supported by recent U.S. economic data

meeting lowered expectations, the greenback may be in for some

weakness, said Perez.

"Central banks cannot provide that much to incentivize

stocks any higher, thus risk-appetite is muted and the buck may

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