September 5, 2019 / 4:19 PM / 16 days ago

FOREX-Yen slips as global tensions abate, pound gains

    * Dollar's loss limited by encouraging U.S. private jobs
data
    * Pound extends rally on hopes 'no-deal' Brexit is averted
    * Swedish crown jumps on hawkish signal from Riksbank
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, Sept 5 (Reuters) - The yen fell 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.
    At 12:08 a.m. (1608 GMT), the dollar 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 was 0.57% lower at
118.1 after falling to 118.6, marking a three-week low versus
the common currency.
    The dollar was 0.07% weaker versus a basket of currencies
 on lower safe-haven demand, but its losses was limited by
some encouraging news on the U.S. labor market.
    "We have relatively robust U.S. employment data that suggest
the U.S. is still the consumer of last resort for the world
economy," Schamotta said.
    Payroll processor ADP said U.S. companies hired 195,000
workers in August, which was more than the 158,000 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 was last trading up 0.63% at $1.233,
moving further from a three-year low reached on Tuesday.
    Against the euro, sterling gained 0.54% at 89.54
pence after touching 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 jumped to a two-week high of 10.6575
against the euro, and also rallied 0.6% against the
dollar. 
========================================================
    Currency bid prices at 12:09PM (1609 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1039        $1.1033     +0.05%         -3.75%      +1.1084     +1.1018
 Dollar/Yen       JPY=        106.9600       106.3800    +0.55%         -2.99%      +107.2200   +106.3300
 Euro/Yen         EURJPY=     118.10         117.39      +0.60%         -6.43%      +118.6000   +117.2900
 Dollar/Swiss     CHF=        0.9865         0.9805      +0.61%         +0.52%      +0.9873     +0.9806
 Sterling/Dollar  GBP=        1.2328         1.2250      +0.64%         -3.36%      +1.2353     +1.2211
 Dollar/Canadian  CAD=        1.3236         1.3222      +0.11%         -2.94%      +1.3245     +1.3192
 Australian/Doll  AUD=        0.6818         0.6796      +0.32%         -3.28%      +0.6830     +0.6795
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0893         1.0820      +0.67%         -3.21%      +1.0913     +1.0819
 Euro/Sterling    EURGBP=     0.8952         0.9005      -0.59%         -0.36%      +0.9030     +0.8948
 NZ               NZD=        0.6373         0.6358      +0.24%         -5.12%      +0.6396     +0.6355
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.9929         9.0299      -0.41%         +4.10%      +9.0353     +8.9658
 Euro/Norway      EURNOK=     9.9265         9.9673      -0.41%         +0.21%      +9.9681     +9.9254
 Dollar/Sweden    SEK=        9.6812         9.7316      -0.46%         +8.00%      +9.7442     +9.6522
 Euro/Sweden      EURSEK=     10.6892        10.7383     -0.46%         +4.14%      +10.7541    +10.6650
 
    
    
    

    
 (Additional reporting by Olga Cotaga in LONDON
Editing by Toby Chopra and Tom Brown)
  
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