* Sterling range-bound until election
* Dollar index up 0.9% for the month
(Updates to U.S. afternoon trading)
By Saqib Iqbal Ahmed
NEW YORK, Nov 29 (Reuters) - The dollar gave up early gains
to trade slightly lower on the day against a basket of
currencies on Friday as a still unsigned partial U.S.-China
trade deal kept investors on edge and the shortened holiday week
limited currency moves.
The dollar index .DXY , which compares the greenback
against six other major currencies, was down 0.12% at 98.253.
Earlier in the session, the index rose as high as 98.544, its
highest since Oct. 15. For the week, the index was about flat.
China warned the United States on Thursday it would take
"firm countermeasures" in response to U.S. law backing
anti-government protesters in Hong Kong, and said attempts to
interfere in the Chinese-ruled city were doomed to fail.
U.S. President Donald Trump on Wednesday signed into law
congressional legislation which supported the protesters,
despite angry objections from Beijing, with which he is seeking
a deal to end a damaging trade war.
"I think it's a lacklustre market mood today, that tone was
set with the muted FX response to Trump signing the HK bill late
on Wednesday," said Amo Sahota, director at Klarity FX in San
Francisco.
"Late session gains for sterling and euro have weighed on
the U.S. dollar, and it looks like enough work has been done to
prevent U.S. dollar index closing above 98.45, which would have
setup a bullish range break," Sahota said.
The euro was 0.09% higher against the greenback after data
showed eurozone inflation accelerated faster than expected in
November on a rise in food and services prices. Annual inflation
rates however remained far lower than European Central Bank
expectations. The pound hovered around $1.29 on Friday, showing little
reaction to political headlines, with analysts expecting little
movement in the run-up to the UK general election on Dec. 12.
The pound was last up 0.2% at $1.2937. Against the Japanese yen JPY= , which tends to attract
investors during times of geopolitical or financial stress as
Japan is the world's biggest creditor nation, the dollar slipped
0.09%.
"The dollar index is lower on the session but on the month
it has been solid," Sahota said.
For the month, the dollar index was up 0.9%, its best
monthly performance since July.
The U.S. currency has found support recently from positive
economic data that show the world's biggest economy is on a firm
footing.
U.S. economic growth picked up slightly in the third
quarter, data showed on Wednesday, in contrast to other
indicators pointing to a slowdown in global activity.
The shortened trading week due to the Thanksgiving holiday
in the United States has kept currency moves muted this week.
FX indexes https://tmsnrt.rs/2QWxmSq
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
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