* German ZEW survey turns euro-positive
* Sterling shrugs off weak GDP data, cements gains before
election
(Recasts throughout, updates rates, adds comments post-U.S.
market open; new byline, changes dateline; previous LONDON)
By Saqib Iqbal Ahmed
NEW YORK, Dec 10 (Reuters) - The dollar slipped against the
euro on Tuesday after a better-than-expected German economic
sentiment survey boosted the common currency even as continued
uncertainty about the outlook for U.S.-China trade talks kept
large moves in the FX market in check.
The euro was 0.16% higher at $1.108 after the ZEW research
institute's monthly index on economic morale among German
investors showed the mood improved far more than forecast in
December, with an unexpected rise in October exports boosting
hopes for an upturn in Europe's biggest economy. "Germany's ZEW expectation readings turned sharply positive
possibly indicating a bottom is in place," Edward Moya, senior
market analyst at OANDA, said in a note.
"The current assessment remains deeply in negative territory
but did improve and beat expectations," he said.
The boost to the euro from the survey was unlikely to
significantly change the euro's direction against the greenback,
John Doyle, vice president of dealing and trading, at Tempus Inc
in Washington, said.
The common currency is down about 3.4% against the dollar
this year.
Currency market moves on Tuesday were fairly muted as
investors awaited developments from central bank meetings in the
United States and Europe and as a Dec. 15 deadline for the next
wave of U.S. tariffs on Chinese goods fed caution in global
markets.
Investors are almost certain the Federal Reserve will leave
rates unchanged when its two-day meeting ends on Wednesday,
while the European Central Bank is likewise expected to keep
interest rates steady on Thursday.
Investors were also awaiting the outcome of Britain's
general election on Thursday.
"Overall we are in wait-and-see mode for the dollar,"
Tempus' Doyle said.
"Central bank meetings and the UK election are the biggest
risk events this week so we see volatility picking up a touch
starting tomorrow afternoon," he said.
U.S.-China trade talks remain in flux with little certainty
about whether Washington will impose a new round of U.S. tariffs
on Chinese consumer goods if the two countries are unable to
agree on a limited trade deal by December 15.
The dollar was little changed versus the safe-haven Japanese
yen at 108.58 yen.
The Chinese yuan CNH= - the currency most sensitive to the
U.S.-China trade war - was little-changed against the U.S.
dollar in the offshore market, last at 7.0313.
Sterling rose 0.24% against the dollar cementing recent
gains as traders shrugged off weak economic growth data and kept
an eye on the final days of campaigning before Britain's general
election on Thursday.
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>