* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Saikat Chatterjee
LONDON, Oct 29 (Reuters) - Risk-oriented currencies
strengthened on Tuesday with the Australian dollar climbing for
a third consecutive session against the Swiss franc as hopes for
an easing in Sino-U.S. trade tensions buoyed sentiment.
Underpinning risk appetite in markets, there is also
heightened general optimism that Britain won't crash out of the
European Union without a deal and the U.S. Federal Reserve will
likely cut interest rates this week for a third time this year.
"That trifecta of positive developments has certainly
underpinned the recent rally," Jim Reid, a strategist at
Deutsche Bank, said in a note.
The Australian dollar gained a third of a percentage point
against the relatively low-yielding Swiss franc and held just
below a four-month high hit in mid-September at 0.6819 francs.
The currency pair AUDCHF= is widely considered to be a
barometer of risk sentiment in the currency markets and is up
1.3% in October, its biggest monthly rise since April 2019.
Broader moves were modest, though, as caution tempered the
mood. The New Zealand NZD=D3 and the Canadian dollars CAD=D3
edged slightly higher while the safe-haven Japanese yen slipped
very slightly.
"Global risks remain but have shown signs of subsiding,"
Philip Wee, FX strategist at Singapore's DBS Bank said in a
note.
U.S. President Donald Trump said a trade agreement looked to
be ahead of schedule on Monday, without detailing the timing.
Washington also said it was studying whether to extend tariff
suspensions due to expire in December. The British pound, meanwhile, GBP=D3 was broadly steady
around $1.285 after British Prime Minister Boris Johnson failed
to gain the majority backing in parliament he required for an
election, the third time he has failed to do so. GBP/
The vote took place after the European Union agreed to a
three-month flexible Brexit delay.
FX market positions https://tmsnrt.rs/32WmaZo
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