* U.S. private-sector payrolls report misses expectations
* U.S. ISM services index falls in November
* U.S.-China trade deal still in focus
* Sterling gains lifts euro as well
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Recasts, adds new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 4 (Reuters) - The safe-haven yen and Swiss franc fell on Wednesday, as risk appetite
improved, after more positive rhetoric on U.S.-China trade negotiations from U.S. President Donald Trump.
The yen earlier rose to two-week highs against the dollar, while the Swiss franc climbed to four-week
peaks as trade uncertainty persisted.
Those concerns, though, eased as the New York session got underway after Trump said on Wednesday that
trade talks with China were going "very well." He sounded more positive than on Tuesday when he said a
trade deal might have to wait until after the November 2020 U.S. presidential election. "Today's news is more about optimism on a U.S.-China trade deal," said Brendan McKenna, currency
strategist at Wells Fargo in New York. "That's probably why we're seeing some of the safe-haven currencies
such as the yen, dollar, and Swiss franc sell off, while some of the emerging market currencies
outperform."
U.S. economic data was also a focus for currency investors, especially after weaker-than-expected U.S.
private-sector jobs data on Wednesday and a soft services report that fueled worries about a slowdown in
the world's largest economy.
A private survey showed that U.S. private-sector hiring in November unexpectedly slowed to its weakest
pace in six months, as goods producers and construction companies cut jobs.
U.S. companies' jobs rose by 67,000 last month, the ADP National Employment Report said. The median
forecast among economists polled by Reuters called for a gain of 140,000 jobs. Following the soft payrolls report, data showed that the U.S. service sector slowed in November, with
the Institute for Supply Management's non-manufacturing index falling to 53.9 in November from 54.7 the
previous month. The weaker-than-expected U.S. services report came after poor U.S. manufacturing data earlier this
week.
"It's fair to say that the U.S. economy is slowing down," said Wells Fargo's McKenna. "But is it
slowing down enough that the Federal Reserve will have to cut rates again? I think it's a little too early
tell at this point."
He added that the Fed is likely in a wait-and-see mode on whether some of the measures they have
recently undertaken have filtered down to the real economy.
The Fed, at its last monetary policy meeting, said it was on hold after cutting interest rates three
times this year. But some analysts suggested that the Fed may have to reconsider that stance if U.S.
economic data continues to underwhelm going forward.
In afternoon trading, the dollar index slipped 0.1% to 97.648 .DXY , after earlier dropping to a
one-month low of 97.433.
Against the yen, the dollar rose 0.2% to 108.90 yen JPY= , while gaining 0.2% versus the Swiss franc
to 0.9895 franc CHF= .
Sterling, meanwhile, gained 0.7% versus the dollar to $1.3090 GBP=D3 , lifted by growing expectations
that Britain will avoid a hung parliament after next week's election. Currency bid prices at 3:25 PM (2025 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1077 $1.1081 -0.04% -3.42% +1.1115 +1.1067
Dollar/Yen JPY= 108.8600 108.6200 +0.22% -1.27% +108.9600 +108.4400
Euro/Yen EURJPY= 120.62 120.37 +0.21% -4.44% +120.7900 +120.1100
Dollar/Swiss CHF= 0.9887 0.9869 +0.18% +0.74% +0.9899 +0.9856
Sterling/Dollar GBP= 1.3099 1.2992 +0.82% +2.68% +1.3120 +1.2983
Dollar/Canadian CAD= 1.3194 1.3294 -0.75% -3.25% +1.3297 +1.3192
Australian/Doll AUD= 0.6851 0.6846 +0.07% -2.81% +0.6855 +0.6813
Euro/Swiss EURCHF= 1.0956 1.0935 +0.19% -2.65% +1.0968 +1.0922
Euro/Sterling EURGBP= 0.8454 0.8527 -0.86% -5.90% +0.8531 +0.8454
NZ NZD= 0.6530 0.6519 +0.17% -2.78% +0.6540 +0.6504
Dollar/Dollar
Dollar/Norway NOK= 9.1663 9.1819 -0.17% +6.11% +9.2150 +9.1523
Euro/Norway EURNOK= 10.1558 10.1830 -0.27% +2.52% +10.2126 +10.1524
Dollar/Sweden SEK= 9.5076 9.5314 -0.23% +6.07% +9.5568 +9.4904
Euro/Sweden EURSEK= 10.5345 10.5588 -0.23% +2.63% +10.5920 +10.5339