February 19, 2019 / 4:21 PM / 5 months ago

FOREX-Dollar slips on U.S.-China trade hopes, Swedish crown sags

    * Dollar loses safe-haven appeal on U.S-China trade optimism
    * Swedish crown slumps as inflation data disappoints
    * Sterling gains on upbeat UK wage growth data 
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, Feb 19 (Reuters) - The dollar on Tuesday fell
against a basket of other currencies as traders scaled back
their safe-haven greenback holdings on optimism that a fresh
round of talks between China and the United States would help
resolve their trade conflict. 
    The dollar index hit a near two-month peak on Friday after
last week's set of negotiations in Beijing failed to result in a
 deal, although officials from both sides said the talks had
produced progress on contentious issues.
    "We are hoping to hear more positive news on trade," said
Dean Popplewell, chief currency strategist at Oanda in Toronto.
"The dollar should come under pressure as it loses some
safe-haven appeal."
    The ICE index, which tracks the dollar against six other
major currencies, was down 0.25 percent at 96.657. On
Friday, it hit 97.368, which was the highest since Dec. 17. 
    U.S. financial markets were closed on Monday for the
Presidents Day holiday.
    Among other major currencies, the Swedish crown tumbled
after weak inflation data spurred sales of the currency and a
paring of bets that interest rates would rise this year. 
    Last week, the crown rose after Sweden's central bank broke
with growing caution among major monetary-policy makers, saying
it would stick to its plan to raise rates in the second half of
2019.
    The currency plunged more than 1 percent to a two-year low
against the dollar at 9.4180, after a report showed
inflation slowed in January.
    Against the euro, it was headed for its biggest daily
decline in more than 15 months. It touched 10.621,
its weakest since September. 
    The euro appreciated against the dollar on trade optimism.
It reversed earlier losses after data showed Italian industrial
orders dropped 5.3 percent in December from a year earlier.

    Euro zone bond yields, notably those of German bunds, fell
amid the cloudy European economic outlook, weighing on the euro.
When European Central Bank policymakers meet on March 7, they
are expected to lower growth and inflation projections.
    The euro was up 0.2 percent at $1.13350, holding
above a three-month low of $1.1234 set last week.
    The single currency, however, fell against the British pound
as data showed domestic workers' salaries held at its fastest
pace in a decade in late 2018.
    The euro was 0.62 percent lower at 86.99 pence, while the
pound was up 0.82 percent at  $1.303. 
    The sterling's gains were limited ahead of British Prime
Minister's Theresa May's meeting with the EU to find a way to
get their Brexit deal through the UK parliament.
========================================================
    Currency bid prices at 11:03AM (1603 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1332        $1.1308     +0.21%         -1.19%      +1.1340     +1.1275
 Dollar/Yen       JPY=        110.5500       110.6000    -0.05%         +0.26%      +110.8200   +110.4600
 Euro/Yen         EURJPY=     125.30         125.07      +0.18%         -0.73%      +125.4600   +124.7700
 Dollar/Swiss     CHF=        1.0015         1.0041      -0.26%         +2.05%      +1.0060     +1.0006
 Sterling/Dollar  GBP=        1.3029         1.2921      +0.84%         +2.12%      +1.3034     +1.2896
 Dollar/Canadian  CAD=        1.3257         1.3239      +0.14%         -2.79%      +1.3282     +1.3234
 Australian/Doll  AUD=        0.7140         0.7130      +0.14%         +1.29%      +0.7143     +0.7104
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1350         1.1361      -0.10%         +0.85%      +1.1373     +1.1334
 Euro/Sterling    EURGBP=     0.8697         0.8748      -0.58%         -3.18%      +0.8762     +0.8694
 NZ               NZD=        0.6853         0.6846      +0.10%         +2.02%      +0.6861     +0.6816
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.5933         8.6077      -0.17%         -0.53%      +8.6477     +8.5898
 Euro/Norway      EURNOK=     9.7406         9.7359      +0.05%         -1.68%      +9.7676     +9.7288
 Dollar/Sweden    SEK=        9.3323         9.2524      +1.04%         +4.11%      +9.4170     +9.2509
 Euro/Sweden      EURSEK=     10.5772        10.4680     +1.04%         +3.05%      +10.6213    +10.4623
    
       

    
 (Additional reporting by Tommy Finn, Tommy Wilkes in LONDON
Editing by Larry King and Steve Orlofsky)
  
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