(Corrects typo in first line of bullets to say euro)
* German ZEW economic survey pushes euro up amid thin
liquidity
* Fiscal stalemate, US-Sino tensions breathe strength into
dollar
* Oil currencies flourish as oil prices rise
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Olga Cotaga
LONDON, Aug 11 (Reuters) - The euro rose on Tuesday after
investor sentiment in Germany improved more than expected in
August.
The ZEW economic survey of economic sentiment rose to 71.5
from 59.3 points the previous month, far exceeding a forecast
for 58.0 in a Reuters poll of economists. Euro/dollar rose 0.5% to $1.1809 EUR=EBS , but Jane Foley,
senior currency analyst at Rabobank, said the move was
exharcebated by thin August liquidity and she was "suspicious"
over how much effect the survey may have on the common currency.
"We need to wait till September to see clear direction
coming from euro/dollar," Foley said.
The euro had been bolstered recently by views that the
continent was handling the coronavirus-induced economic slowdown
much better than the United States.
The U.S. dollar had maintained its gains in early European
trading on U.S.-China tensions and a stalemate in the U.S.
Congress over fiscal stimulus, but fresh data pointing out that
the rest of the world was doing better than the United States
quickly removed those gains.
The dollar had risen earlier to $1.1722, its strongest since
Aug. 4. Before that, the dollar had declined for seven straight
weeks.
The dollar was last up 0.1% against the Japanese yen at
106.09 JPY=EBS as U.S. 10-year Treasury yields rose to
two-week highs US10YT=RR before a quarterly U.S. refunding
auction on Tuesday.
"Yields have edged up ... to make room for the supply," Kit
Juckes, macro strategist at Societe Generale, said.
Congressional leaders and Trump administration officials
said on Monday they were ready to resume negotiations on a
coronavirus aid deal. It was unclear whether they could bridge
their differences. Meanwhile, China imposed sanctions on 11 U.S. citizens,
including Republican lawmakers, following Washington's sanctions
on Hong Kong and Chinese officials. And U.S. Treasury Secretary Steven Mnuchin said companies
from China and other countries that do not comply with
accounting standards will be delisted from U.S. stock exchanges
as of the end of 2021. Market response to the U.S.-China conflict has been limited,
but analysts say there could be longer-term implications.
"The market remains in the expectation that everything will
turn out for the best in the dispute," Commerzbank currency
analyst Antje Praefcke said. But "an agreement has probably
already been priced in accordingly, which means that the dollar
has hardly any more upside potential."
"The euro does not really have that much to offer these
days, either ... The bottom line is that with $1.19 we probably
have seen the highs in euro/dollar for the time being, but at
the same time there are no good reasons for levels below $1.16,"
Praefcke said.
Elsewhere, the Turkish lira stayed near Friday's record low
on concerns about the country's dwindling foreign-exchange
reserves, leading to expectations the central bank will take
more decisive action to stem its fall.
The lira was quoted at 7.2362 per dollar TRYTOM=D3 , just
above Friday's record low of 7.3650.
The Norwegian crown, on the other hand, has flourished as
oil prices rose, becoming the best performer so far this week
alongside the Canadian dollar and the Russian rouble, according
to MUFG analysts.
The crown was last up 0.8% at 8.9575 to the dollar
NOK=D3 , boosted by Monday's central bank report that showed
Norges Bank was one of the least dovish G10 central banks.
The Canadian dollar rose 0.5% to $1.3284 CAD=D3 .
Sterling was up 0.2% at $1.3105 GBP=D3 after Bank of
England Deputy Governor Dave Ramsden said in an interview
published on Tuesday the central bank will step up quantitative
easing if the British economy struggles again. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Eurodollar https://tmsnrt.rs/2FdCJJj
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