* China narrowing scope for trade deal - Bloomberg
* Dollar loses momentum despite Friday's upbeat jobs data
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Hideyuki Sano and Tom Westbrook
TOKYO/SINGAPORE, Oct 7 (Reuters) - The yen gained slightly
and the yuan slipped on Monday as investors nervously awaited
U.S.-China talks this week for signs of whether the two sides
can de-escalate or end their punishing trade war.
Risk appetite soured noticeably after Bloomberg reported
that Chinese officials are signalling they are increasingly
reluctant to agree to a broad deal pursued by U.S. President
Donald Trump. "Nothing is yet in the bag, and optimism on trade has proved
time and again to be misplaced," said Rob Carnell, Asia-Pacific
chief economist at ING.
The Japanese yen JPY= , regarded as a safe haven by virtue
of Japan's status as the world's biggest creditor, edged up 0.1%
to 106.79 per dollar.
The Chinese yuan CNH= , the currency most exposed to
trade-war tensions, fell more than 0.3% to 7.1356 per dollar in
offshore trade. There was no onshore trading as Monday is the
last day of China's long holiday break for its national day.
Other trade-exposed currencies such as the Australian dollar
AUD=D3 and the Korean won KRW= also fell on doubts that much
will be achieved at the trade negotiations.
Deputy-level meetings will be held on Monday and Tuesday,
with top-level talks scheduled for Thursday and Friday, when
Chinese Vice Premier Liu He meets U.S. Trade Representative
Robert Lighthizer and Treasury Secretary Steven Mnuchin in
Washington.
Global markets have been on a roller coaster ride this year
as hopes for a deal have waxed and waned, while weak economic
data in Europe, the United States and China have added to
evidence that the tensions are dragging on global trade and
growth.
The jitters knocked the dollar from a two-year high last
week, and it remained subdued on Monday. Against a basket of
major currencies .DXY it was steady at 98.818 - almost a
percentage point below its week-ago peak.
Signals from both sides in the lead-up to the trade talks
have been mixed.
Trump last month delayed hiking levies on $250 billion worth
of Chinese imports from Oct. 1 to Oct. 15, "as a gesture of good
will," while China has again begun purchasing U.S agricultural
goods.
But administration sources late in September also said the
U.S. was considering imposing restrictions on investing in
Chinese companies.
"The odds remain low for a trade deal," analysts at DBS Bank
in Singapore said in an emailed note.
"Washington wants to get the whole deal done but Beijing is
unwilling to do so without the U.S. rolling back tariffs."
As the dollar has lost momentum, the euro stood at $1.0979
EUR= , up 0.03% in Asia, recovering little by little after
having hit a near 2-1/2-year low of $1.0879 last Tuesday.
Sterling was little changed at $1.2325 GBP=D4 , with
uncertainties over Brexit keeping many investors on the
sideline.
With only a few weeks until UK's scheduled exit from the
European Union on Oct. 31, British Prime Minister Boris Johnson
is seeking significant changes to how the contentious issue of
the Irish border is dealt with. The European Union and Ireland said last week that his
proposals were unlikely to yield a deal.