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FOREX-Yen falls as global tensions abate, sterling rises

Published 05/09/2019, 20:06
Updated 05/09/2019, 20:10
FOREX-Yen falls as global tensions abate, sterling rises
EUR/USD
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USD/JPY
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USD/NOK
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ADP
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DXY
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* Dollar's loss limited by encouraging U.S. private jobs

* Pound extends rise on hopes 'no-deal' Brexit is averted

* Swedish crown gains on hawkish signal from Riksbank

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Updates market action, adds quote)

By Richard Leong

NEW YORK, Sept 5 (Reuters) - The yen slipped on Thursday as

global tensions including the U.S.-China trade conflict showed

signs of thawing, bolstering investor confidence and reducing

demand for safe-haven currencies.

The pound rose to its highest level against the dollar in

more than a month on hopes that a no-deal Brexit would be

avoided.

"Funding currencies are in retreat on a ratcheting down of

tensions on a global basis," said Karl Schamotta, director of

global markets strategy at Cambridge Global Payments in Toronto.

The most notable development was China and the United States

agreeing on Thursday to hold high-level talks in early October

in Washington. That stoked hopes the world's biggest economies

would move toward a deal to resolve their trade differences.

Their heated rhetoric and tit-for-tat tariffs have rattled

investors and their outlook on the global economy since this

summer.

"That's very positive since it's been so tumultuous for

markets the past few months because of the trade war," Minh

Trang, senior currency trader at Silicon Valley Bank in Santa

Clara, California, said of the October trade talks.

In late U.S. trading, the dollar JPY=EBS was up 0.53% at

106.975 yen after reaching 107.235 yen, which was its highest

level since late July.

Against the euro, the yen EURJPY=EBS was 0.5% lower at

118.015 after falling to 118.6, marking a three-week low versus

the common currency.

The dollar was 0.04% weaker versus a basket of currencies

.DXY on lower safe-haven demand, but its losses were limited

by some encouraging news on the U.S. labor market and service

sector.

Payroll processor ADP (NASDAQ:ADP) said U.S. companies hired 195,000

workers in August, which exceded the 158,000-worker increase

that analysts polled by Reuters had forecast. Traders and analysts await the government's monthly payrolls

report due at 8:30 a.m. (1230 GMT) on Friday as a confirmation

of resilience in the labor market.

Sterling continued its rally after British lawmakers

approved legislation on Wednesday to extend the Brexit deadline

for the third time and rejected Prime Minister Boris Johnson's

motion to hold a snap election.

The pound GBP=D3 was last trading up 0.60% at $1.2327,

moving further from a three-year low reached on Tuesday.

Against the euro, sterling EURGBP=D3 gained 0.57% to 89.52

pence after touching a near six-week high of 89.49 pence.

Among other major currencies, the Swedish crown jumped after

Riksbank, the country's central bank, said it still expected to

tighten monetary policy around the turn of the year, surprising

markets and sparking big gains in the long-suffering currency.

The Swedish crown reached a two-week high of 10.6575 against

the euro EURSEK=D3 , and rose 0.44% to 9.693 to the dollar

SEK=D3 .

========================================================

Currency bid prices at 2:56PM (1856 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.1031 $1.1033 -0.02% -3.82% +1.1084 +1.1018

Dollar/Yen JPY= 106.9600 106.3800 +0.55% -2.99% +107.2200 +106.3300

Euro/Yen EURJPY= 118.00 117.39 +0.52% -6.51% +118.6000 +117.2900

Dollar/Swiss CHF= 0.9868 0.9805 +0.64% +0.55% +0.9873 +0.9806

Sterling/Dollar GBP= 1.2325 1.2250 +0.61% -3.39% +1.2353 +1.2211

Dollar/Canadian CAD= 1.3237 1.3222 +0.11% -2.94% +1.3246 +1.3192

Australian/Doll AUD= 0.6814 0.6796 +0.26% -3.33% +0.6830 +0.6795

Euro/Swiss EURCHF= 1.0887 1.0820 +0.62% -3.26% +1.0913 +1.0819

Euro/Sterling EURGBP= 0.8951 0.9005 -0.60% -0.37% +0.9030 +0.8948

NZ NZD= 0.6371 0.6358 +0.20% -5.15% +0.6396 +0.6355

Dollar/Dollar

Dollar/Norway NOK= 9.0078 9.0299 -0.24% +4.27% +9.0353 +8.9658

Euro/Norway EURNOK= 9.9388 9.9673 -0.29% +0.33% +9.9681 +9.9254

Dollar/Sweden SEK= 9.6952 9.7316 -0.38% +8.16% +9.7442 +9.6522

Euro/Sweden EURSEK= 10.6973 10.7383 -0.38% +4.22% +10.7541 +10.6650

Japanese yen loses ground as US-China return to negotiating

table https://tmsnrt.rs/2zStsjR

Swedish crown rises on Riksbank forecasting higher rates https://tmsnrt.rs/2PHk5y3

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