June 10, 2019 / 1:55 PM / 6 days ago

FOREX-Dollar gains as Mexican tariffs averted, boosting risk sentiment

 (New throughout, updates trading and comments to U.S. market
open, new byline, changes dateline, previous LONDON)
    By Karen Brettell
    NEW YORK, June 10 (Reuters) - The dollar gained on Monday
after the United States and Mexico reached a deal to avoid
tariffs, while the euro faltered after sources said European
Central Bank policymakers were open to cutting interest rates
should economic growth slow.
    On Friday, Mexico agreed to rapidly expand an asylum program
and deploy security forces to stem the flow of illegal Central
American migrants. This averted a tariff war with
the United States.
    “The news that tariffs on Mexico will now be averted is the
main reason the dollar had a good bounce overnight,” said
Richard Franulovich, head of FX strategy at Westpac Banking Corp
in New York.
    Last week, the greenback weakened on concerns that trade
disputes wiould hurt the global economy. U.S. jobs data also was
weaker than expected, feeding expectations the Federal Reseve
would cut U.S. interest rates.
    The U.S.-China trade war and worries that U.S. President
Donald Trump will slap tariffs on Japan and Europe should keep
investors averse to loading up on riskier assets.
    “I think the market psyche has been rattled and this is
increasingly going to be a headwind for sentiment,” said
Franulovich. “There is still the outstanding issue with China,
and on top of that many other countries that are in his cross
hairs.”
    On Monday, Trump said he believed China will make a trade
deal with Washington. He also said China devalues its currency,
which creates an uneven playing field, and criticized the Fed's
failure to quickly lower U.S. interest rates as "destructive."
    The euro dipped after two sources familiar with the ECB's
policy discussions said on Sunday that a rate cut was firmly in
play if the bloc's economy stagnates again after expanding by
0.4% in the first quarter.
    The single currency rocketed last week after the ECB said
rates would stay "at their present levels" until mid-2020
instead of hinting at rate cuts as some expected.
    
    ========================================================
    Currency bid prices at 9:35AM (1335 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1315        $1.1331     -0.14%         -1.34%      +1.1330     +1.1291
 Dollar/Yen       JPY=        108.5200       108.1800    +0.31%         -1.58%      +108.7100   +108.3800
 Euro/Yen         EURJPY=     122.80         122.60      +0.16%         -2.71%      +122.9100   +122.6600
 Dollar/Swiss     CHF=        0.9897         0.9876      +0.21%         +0.85%      +0.9917     +0.9877
 Sterling/Dollar  GBP=        1.2678         1.2734      -0.44%         -0.62%      +1.2746     +1.2655
 Dollar/Canadian  CAD=        1.3253         1.3265      -0.09%         -2.82%      +1.3280     +1.3225
 Australian/Doll  AUD=        0.6970         0.6998      -0.40%         -1.12%      +0.7022     +0.6961
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1199         1.1193      +0.05%         -0.49%      +1.1209     +1.1183
 Euro/Sterling    EURGBP=     0.8924         0.8899      +0.28%         -0.67%      +0.8929     +0.8880
 NZ               NZD=        0.6624         0.6664      -0.60%         -1.38%      +0.6678     +0.6613
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.6390         8.6243      +0.17%         +0.00%      +8.6596     +8.6151
 Euro/Norway      EURNOK=     9.7773         9.7772      +0.00%         -1.30%      +9.7856     +9.7548
 Dollar/Sweden    SEK=        9.3982         9.3967      -0.12%         +4.85%      +9.4382     +9.3970
 Euro/Sweden      EURSEK=     10.6350        10.6480     -0.12%         +3.62%      +10.6651    +10.6358
 
 (Additional reporting by Tommy Wilkes in London; Editing by
David Gregorio)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below