FOREX-Dollar rises on renewed U.S.-Sino tensions, jobs data eyed

* Most major currencies fall vs greenback, except yen
* US non-farm payrolls due later in the day, seen weak
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Olga Cotaga
LONDON, Aug 7 (Reuters) - The U.S. dollar rebounded whilst
other major currencies weakened on Friday after President Donald
Trump took steps to ban transactions with the Chinese owners of
two popular mobile apps.
Trump issued on Thursday an executive order banning
transactions with ByteDance, the Chinese company that owns the
video-sharing app TikTok, and with Tencent Holdings Ltd
0700.HK , which owns the WeChat messaging app.
The U.S. dollar strengthened despite the fact that
employment data in the United States was expected to come in
weaker, but with expectations being so low, any surprise to the
upside would push the dollar higher, analysts said.
"What matters now for currencies is still the economic
outlook," said Esther Maria Reichelt, currency analyst at
Commerzbank, adding that key is still which countries are
emerging after coronavirus as winners.
"It's easy for the U.S. dollar to find reason to appreciate
again," Reichelt said.
Non-farm payrolls due later on Friday are widely expected to
show U.S. jobs creation slowed in July from the previous month,
indicating a resurgence in coronavirus infections is undermining
the economic recovery there.
The euro retreated from its highs and last traded down 0.3%
at $1.1845 EUR=EBS , while the British pound also fell 0.2% to
$1.3115 GBP=D3 .
Other major currencies also weakened against the dollar,
with the Japanese yen the only outlier, last trading flat at
105.58 JPY=EBS .
The Australian dollar fell, hurt by concerns about worsening
U.S.-Chinese relations and the Reserve Bank of Australia's
downbeat assessment of the local economy. It was last down 0.3%
at 0.7220 AUD=D3 .
The U.S. dollar is rebounding from a persistent sell-off in
recent weeks due to a combination of rising U.S. coronavirus
infections, a steady decline in Treasury yields, and a lack of
consensus in Washington over additional fiscal stimulus.
But the resurgent dollar proved that any shift in investors'
risk sentiment could easily bring back appetite for the U.S.
currency.
U.S. Republicans and Democrats have so far failed to reach
an agreement on the cost of fiscal stimulus measures that many
investors say is necessary to prevent the economy from losing
more momentum.