December 4, 2019 / 3:56 PM / a month ago

FOREX-Dollar falls to one-month low on weak U.S. data; trade deal in focus

    * 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

 (Recasts adds new comment, U.S. data, FX table, updates prices, changes byline, dateline; previous
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Dec 4 (Reuters) - The dollar fell to a one-month low on Wednesday, undermined by
weaker-than-expected U.S. private sector job growth data that followed soft manufacturing numbers earlier
in the week that fueled worries the world's largest economy could slip into recession.
    The U.S. currency also slid to a four-week trough versus the euro and earlier dipped to a two-week low
against the yen before recovering to trade slightly higher on the day. 
    "We have seen big U.S. data misses this week and that doesn't help dollar sentiment," said Shaun
Osborne, chief FX strategist at Scotiabank in Toronto.
    A private survey showed on Wednesday 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.
    "This data is hard to ignore," Scotiabank's Osborne said. "We have seen some slowing in hiring in the
U.S. recently. But it's not too surprising given the headwinds for global growth and the slowdown in the
    Following the soft payrolls report, data showed that the Institute for Supply Management's
non-manufacturing index fell 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
    U.S.-China trade negotiations were also in focus on Wednesday.
    A Bloomberg report that the two sides were close to agreeing on the amount of tariffs that would be
rolled back in a phase-one trade deal boosted the offshore-Chinese yuan by 0.2% to 7.05.
    The Chinese currency had languished around seven-week lows to the dollar after U.S. President Donald
Trump said on Tuesday a trade agreement may be delayed until after the November 2020 U.S. presidential
    Overall, the dollar index fell 0.2% to 97.530, after earlier dropping to a one-month low of
    The dollar trades with an 11% premium in times of trade uncertainty, Osborne said, but the greenback
seems to have peaked in October as trade tensions have somewhat eased.
    "It's really gotten to the point where 'people familiar with trade negotiations' are on the ball and
there is some progress here and we're going toward some skinny trade deal," Osborne said.
    "I would expect the dollar to soften."
    Against the yen, the dollar rose 0.2% to 108.81 yen
    Sterling gained 0.9% versus the dollar to $1.3118, lifting the euro with it, which rose 0.1%
to $1.1091. 
    Currency bid prices at 10:34AM (1534 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1086        $1.1081     +0.05%         -3.34%      +1.1115     +1.1067
 Dollar/Yen       JPY=        108.8500       108.6200    +0.21%         -1.28%      +108.8700   +108.4400
 Euro/Yen         EURJPY=     120.69         120.37      +0.27%         -4.38%      +120.7900   +120.1100
 Dollar/Swiss     CHF=        0.9882         0.9869      +0.13%         +0.69%      +0.9894     +0.9856
 Sterling/Dollar  GBP=        1.3100         1.2992      +0.83%         +2.69%      +1.3120     +1.2983
 Dollar/Canadian  CAD=        1.3229         1.3294      -0.49%         -2.99%      +1.3297     +1.3219
 Australian/Doll  AUD=        0.6843         0.6846      -0.04%         -2.92%      +0.6853     +0.6813
 Euro/Swiss       EURCHF=     1.0956         1.0935      +0.19%         -2.65%      +1.0968     +1.0922
 Euro/Sterling    EURGBP=     0.8461         0.8527      -0.77%         -5.82%      +0.8531     +0.8455
 NZ               NZD=        0.6525         0.6519      +0.09%         -2.86%      +0.6540     +0.6504
 Dollar/Norway    NOK=        9.1658         9.1819      -0.18%         +6.10%      +9.2150     +9.1523
 Euro/Norway      EURNOK=     10.1630        10.1830     -0.20%         +2.59%      +10.2126    +10.1524
 Dollar/Sweden    SEK=        9.5085         9.5314      -0.14%         +6.08%      +9.5568     +9.4904
 Euro/Sweden      EURSEK=     10.5440        10.5588     -0.14%         +2.73%      +10.5920    +10.5380
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Saikat Chatterjee in London; editing by
Bill Berkrot)
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