* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Saikat Chatterjee
LONDON, Sept 2 (Reuters) - The euro held below the $1.10
level on Monday after Washington and Beijing put additional
tariffs on each other's exports over the weekend, adding to
concerns over the economic outlook of the export-focused
European economy.
With U.S. markets shut for a holiday on Monday, though,
investors remained on the sidelines while looking to see what
expansionary policies the European Central Bank and the U.S.
Federal Reserve could unveil this month.
The United States slapped 15% tariffs on a variety of
Chinese goods on Sunday - including footwear, smart watches and
flat-panel televisions - while China imposed new duties on U.S.
Versus the dollar EUR=EBS , the euro edged 0.1% lower at
$1.0977 after falling below $1.10 on Friday for the first time
since May 2017.
The euro's more than 4% slide this year is a big reversal in
fortunes for the single currency after ECB chief Mario Draghi
first indicated a likely pull back in its extraordinary stimulus
policies in a speech in Sintra in June 2017.
But since then an escalation in trade tensions between the
United States and China, plus a growing swathe of global
government bond yields sinking into negative territory thanks to
a worsening economic outlook, has sapped demand for the euro.
Though latest futures data indicated that net hedge fund
positions in the single currency are broadly at neutral levels,
they are quite some way from record high levels seen last year.
Broader market sentiment remained on the back foot too with
net positions in the Japanese yen creeping up to its highest
levels in nearly three years.
Elsewhere, the dollar index .DXY which measures the
greenback's performance against a basket of six major currencies
was broadly steady at 98.87.
Japan Yen short positions https://tmsnrt.rs/2kcyvHR
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