* German ZEW survey turns euro-positive
* Dollar trades weaker against most major currencies
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Recasts, updates prices and adds latest news)
By Olga Cotaga
LONDON, Dec 10 (Reuters) - The euro rose on Tuesday after a
better-than-expected German economic sentiment survey, with
moves limited by doubts that the release will change the
rhetoric of the European Central Bank.
The dollar was little changed versus the safe-haven Japanese
yen as investors remained wary of a deadline for U.S. tariffs on
China, the British election and upcoming Federal Reserve and ECB
meetings. It was weaker against a basket of major currencies.
"The message from the ECB is unlikely to change much," while
the Fed could cut rates next year, which means markets' focus is
likely to stay on the Fed, said Richard Falkenhäll, senior
currency strategist at SEB.
"It's too early to expect any major change when it comes to
ECB communication," he said.
The focus for now is whether Washington will go ahead with a
new round of tariffs on Chinese goods on Sunday, or whether a
deal with China can be reached before then.
White House economic adviser Larry Kudlow said on Friday
that the Dec. 15 deadline is still in place, but Agriculture
Secretary Sonny Perdue suggested it may not be imposed.
The euro rose 0.2% to $1.1082 EUR=EBS after a survey
showed that the mood among German investors improved more than
forecast in December. The dollar was flat against the Japanese yen JPY= at
108.56. Against a basket of currencies, the dollar traded down
0.1% at 97.513 .DXY .
The Chinese yuan -- the currency most sensitive to the
U.S.-China trade war -- was also trading neutral against the
U.S. dollar in the offshore market, last at 7.0398 CNH=EBS .
Soaring inflation in China had little effect on a market
waiting for trade news. Kit Juckes, macro strategist at Societe Generale, called
markets "dull".
Investors are almost certain the Fed will leave rates
unchanged when its two-day meeting ends on Wednesday. In a
year's time, however, money markets are pricing in a full 25-
basis-point cut. FEDWATCH
The ECB is likewise expected to keep interest rates steady
on Thursday. A probability of less than 50% for a 10-basis-point
rate cut by the end of next year is priced into the euro zone
money markets right now. ECBWATCH
The pound rose to a seven-month high of $1.3190 GBP=D3 on
expectations the Conservative Party will win a majority in the
British election on Thursday. Against the euro, sterling was up
0.2% at 84.05 pence EURGBP=D3 , close to a two-and-a-half-year
high of 83.94 pence it reached on Monday.