August 9, 2019 / 3:12 PM / 4 months ago

FOREX-Yen, Swiss franc rise on trade worries, downbeat global data

    * Yen strengthens beyond 106 as investors look for safety
    * Swiss franc rises on safe-haven bids as well
    * Italian political uncertainty weighs on risk appetite
    * Soft global data boosts risk aversion
    * Dollar headed for biggest weekly decline since June
    * Graphic: World FX rates in 2019

 (New throughout, updates prices, market activity, comments; new byline, changes dateline, previous
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Aug 9 (Reuters) - The yen and Swiss franc gained on Friday, as investors sought the
safe-haven currencies due to nagging U.S.-China trade war jitters, renewed political uncertainty in Italy
and weak economic data around the world.
    Deep liquidity and current account surpluses in Japan and Switzerland attract safe-haven flows to
those currencies during times of geopolitical and economic stress.
    "What wouldn't make safe havens look attractive this week," said John Doyle, vice president for
dealing and trading at Tempus, Inc. in Washington.
    "The equity board is awash in red. The trade tensions are a big thing and if you look around the
world, all the data were negative, or at least concerning. So of course, we're going to see an uptick in
the Swissie (franc) and the yen," he added.
    Fears of Washington's trade war with Beijing escalated after Bloomberg reported the United States has
again held off on granting licenses to China's telecom equipment maker Huawei.
    U.S. data showed underlying producer prices fell 0.1% in July, suggesting inflation remained muted.
Canada's economy lost 24,200 jobs last month. In Britain, the economy shrank for
the first time since 2012 in the second quarter and sterling slid to a 31-month low against the dollar.

    There was a sell-off in Italiana bonds as Italy added to the global tension. The ruling League party
filed a no-confidence motion against the prime minister, a move the party's populist chief Matteo Salvani
hopes will trigger early elections and install him as the new leader.
    The dollar weakened against a basket of currencies, pressured as U.S. President Donald Trump repeated
his call for a weaker currency to help American manufacturers. 
    Trump told reporters at the White House he believes the Federal Reserve needs to lower interest rates
by a full percentage point.
    In late morning trading, the dollar fell 0.4% against  a surging yen to 105.61 yen, near the
seven-month low of 105.5 hit earlier this week. The yen was on course for its second weekly gain versus
the U.S. dollar and its third weekly gain versus the Australian and New Zealand dollars.
    The Swiss franc rose versus the dollar and euro. The dollar was last down 0.2% at 0.9732 franc,
while the euro slipped 0.1% at 1.0893 francs.
    The euro rose against the dollar to $1.1198., showing little reaction after Salvini called for
early elections.
    The dollar index dipped 0.1% slipped to 97.545 and remained on course for its biggest
weekly decline since June 21.
    Sterling fell 0.5% to $1.2075 against the dollar and 0.7% versus the euro, which rose to 92.74
pence, after the UK's weak data.
    Currency bid prices at 10:45 AM (1445 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1198        $1.1178     +0.18%         -2.36%      +1.1208     +1.1181
 Dollar/Yen       JPY=        105.5800       106.0600    -0.45%         -4.24%      +106.1100   +105.5800
 Euro/Yen         EURJPY=     118.26         118.58      -0.27%         -6.31%      +118.7200   +118.2500
 Dollar/Swiss     CHF=        0.9730         0.9746      -0.16%         -0.86%      +0.9754     +0.9719
 Sterling/Dollar  GBP=        1.2078         1.2131      -0.44%         -5.31%      +1.2153     +1.2057
 Dollar/Canadian  CAD=        1.3237         1.3224      +0.10%         -2.93%      +1.3274     +1.3206
 Australian/Doll  AUD=        0.6806         0.6800      +0.09%         -3.45%      +0.6818     +0.6780
 Euro/Swiss       EURCHF=     1.0898         1.0897      +0.01%         -3.16%      +1.0913     +1.0889
 Euro/Sterling    EURGBP=     0.9269         0.9213      +0.61%         +3.17%      +0.9289     +0.9208
 NZ               NZD=        0.6488         0.6478      +0.15%         -3.41%      +0.6498     +0.6463
 Dollar/Norway    NOK=        8.8759         8.9261      -0.56%         +2.75%      +8.9324     +8.8504
 Euro/Norway      EURNOK=     9.9412         9.9797      -0.39%         +0.36%      +9.9955     +9.9101
 Dollar/Sweden    SEK=        9.5426         9.5982      -0.40%         +6.46%      +9.6066     +9.5257
 Euro/Sweden      EURSEK=     10.6891        10.7321     -0.40%         +4.14%      +10.7476    +10.6648
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Tommy Wilkes in London; Editing by David
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