* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Non-farm payrolls expected to show slower job growth
* Worries about trade war dent dollar
* Slump in Treasury yields gives dollar bulls pause
By Stanley White
TOKYO, Nov 1 (Reuters) - The dollar traded near a three-week
low versus the yen on Friday before a U.S. employment report
expected to show a slowdown in job creation, highlighting
concerns about the health of the world's largest economy.
The U.S. currency also nursed losses against the euro and
the pound after Bloomberg reported that Chinese officials have
doubts about reaching a comprehensive long-term solution to the
U.S.-Sino trade war.
The U.S. Federal Reserve cut interest rates this week for
the third time this year and indicated that further monetary
easing is unlikely, citing several pockets of strength in the
U.S. economy.
However, the Fed's hawkish tone has failed to put a floor
under the dollar and U.S. Treasury yields, which suggests some
investors do not share the central bank's confidence in the
economic outlook due to risks posed by the trade war.
"The Fed is expected to be on hold in December, but the
markets are trying to price in a rate cut next year, because
people doubt that talks to end the trade war will go smoothly,"
said Junichi Ishikawa, senior foreign exchange strategist at IG
Securities in Tokyo.
"If the jobs data prints to the weak side, that would put
even more pressure on the dollar."
The dollar stood at 108.02 yen JPY=EBS on Friday, close to
a three-week low of 107.92 reached on Thursday after renewed
doubts about efforts to resolve the U.S.-China trade war rattled
the greenback and pushed global stock markets lower.
The U.S. currency is on course for a 0.6% decline against
the yen this week, which would be its biggest weekly loss since
Oct. 4. The dollar index .DXY against a basket of six major
currencies eased slightly to 97.296, on course for a 0.55%
weekly decline.
U.S. President Donald Trump said on Thursday the United
States and China would soon announce a new site where he and
Chinese President Xi Jinping will sign a "Phase One" trade deal
after Chile cancelled a planned summit set for mid-November.
However, Trump's comments on Twitter did little to offset
concerns sparked by Bloomberg's story, which said Chinese
officials will not budge on the thorniest issues in trade talks
with the United States. In the offshore market, the yuan CNH=D3 traded at 7.0464
per dollar, on course for a fifth straight week of gains.
Washington and Beijing have been locked in a fierce near
16-months long trade war that has slowed global trade, raised
the risk of recession for some economies and roiled financial
markets.
The U.S. economy is forecast to have created 89,000 new jobs
in October, slower than 136,000 new jobs created in the previous
month, according to a Reuters poll.
The yield on benchmark 10-year Treasury notes US10YT=RR
fell to 1.6892% on Friday, extending declines from Thursday that
were triggered by waning hopes for a resolution to the trade
friction.
The pound GBP=D3 traded at $1.2937, on course for a 0.79%
weekly gain. Sterling EURGBP=D3 was quoted at 86.22 pence per
euro, headed for a 0.19% rise this week.
Sterling has found support due to the receding risk of
Britain crashing out of the European Union without a deal on
trade and borders.