* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Updates prices, adds detail on economic indicators)
By Karen Brettell and Noel Randewich
NEW YORK, June 23 (Reuters) - The euro jumped to one-week
highs following positive economic data on Tuesday, while the
Australian dollar and other higher-risk currencies strengthened
after U.S. officials confirmed that the U.S.-China trade deal
remained intact.
The euro bounced following a sign of recovery this month in
the euro zone economy's downturn caused by the coronavirus
pandemic. IHS Markit's Flash Composite Purchasing Managers'
Index (PMI), seen as a good gauge of economic health, recovered
to 47.5 from May's 31.9, moving closer to the 50 mark separating
growth from contraction. In April it hit a record low 13.6.
“The story in the G10 is the euro zone PMIs coming in above
expectations,” said Vassili Serebriakov, an FX and macro
strategist at UBS in New York. Those economic readings are
encouraging “in the sense that growth is rebounding a bit faster
than markets expected.”
Investors are weighing better-than-expected economic data
against increases in new cases of the coronavirus in certain
areas across the globe.
The greenback had briefly gained overnight on safety buying
after White House trade adviser Peter Navarro said the
U.S.-China trade pact was "over."
Risk sentiment got a boost after Navarro walked back those
remarks, saying they were taken out of context. U.S. President
Donald Trump later confirmed in a tweet that the deal with China
was "fully intact." "We expect limited further fallout, with President Trump
expected to remain committed to the phase one trade deal in the
run up to the election," said Lee Harman, currency analyst at
MUFG.
"However, last night's price action does highlight that the
FX market remains sensitive to trade policy uncertainty. It
remains a potential trigger for higher volatility," he said.
The euro EUR= was last up 0.46% on the day at $1.1310,
after getting as high as $1.1337, the highest since June 16.
The Australian dollar AUD= jumped 0.42% to $0.6934, after
earlier reaching $0.6973, also the highest since June 16.
The dollar slipped 0.37% against the yen JPY= to 106.4700
yen, after getting as low as 106.06 yen, the weakest since May
7.
U.S. data on Tuesday showed that U.S. business activity
contracted for a fifth straight month in June, while sales of
new U.S. single-family homes increased more than expected in
May. Better-than-expected U.S. macroeconomics reports have
elevated Citi's U.S. economic surprise index to record highs and
emboldened expectations that a recovery from the slump caused by
the coronavirus pandemic may not take as long as some analysts
feared.
Currency bid prices at 14:56 pm ET (1856 GMT)
Description RIC Last U.S. Close Pct YTD Pct High Bid Low Bid
Previous Change Change
Session
Euro/Dollar EUR= $1.1310 $1.1258 +0.46% +0.89% +1.1348 +1.1234
Dollar/Yen JPY= 106.4700 106.8700 -0.37% -2.19% +107.2100 +106.0800
Euro/Yen EURJPY= 120.44 120.36 +0.07% -1.24% +121.0900 +119.9300
Dollar/Swiss CHF= 0.9446 0.9475 -0.31% -2.40% +0.9493 +0.9421
Sterling/Dollar GBP= 1.2520 1.2461 +0.47% -5.57% +1.2531 +1.2433
Dollar/Canadian CAD= 1.3538 1.3520 +0.13% +4.25% +1.3570 +1.3486
Australian/Doll AUD= 0.6934 0.6905 +0.42% -1.25% +0.6974 +0.6859
ar
Euro/Swiss EURCHF= 1.0687 1.0670 +0.16% -1.52% +1.0711 +1.0661
Euro/Sterling EURGBP= 0.9032 0.9029 +0.03% +6.84% +0.9078 +0.9020
NZ NZD= 0.6494 0.6478 +0.25% -3.59% +0.6532 +0.6438
Dollar/Dollar
Dollar/Norway NOK= 9.5051 9.6015 -1.00% +8.28% +9.6858 +9.4610
Euro/Norway EURNOK= 10.7539 10.8018 -0.44% +9.31% +10.8890 +10.7160
Dollar/Sweden SEK= 9.2878 9.3687 -0.38% -0.64% +9.4137 +9.2561
Euro/Sweden EURSEK= 10.5070 10.5476 -0.38% +0.36% +10.5795 +10.4918
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Euro overnight volatility rises https://tmsnrt.rs/3fPusrS
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