April 9, 2019 / 3:29 PM / 5 months ago

FOREX -Yen gains on U.S.-Europe trade tension, weaker IMF forecasts

    * IMF cuts 2019 global growth forecast, 2020 view unchanged
    * Euro holds up despite U.S. tariffs threat, IMF outlook
    * Commodity currencies retreat as oil falls from highs 
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, April 9 (Reuters) - The yen rose on Tuesday as
traders favored the safe-haven currency after the United States
announced it was considering tariffs on $11 billion of European
goods and the International Monetary Fund downgraded its outlook
on the global economy.
    These factors weighed on market sentiment, spurring selling
on Wall Street and touching off a partial reversal of earlier
gains in oil prices. The pull back in crude and other commodity
prices cut into the initial gains of the Canadian and Australian
dollar as well as emerging currencies.
    "Yen is now the top dog with lower stocks weighing on risk
appetite," said Joe Manimbo, senior market analyst at Western
Union Business Solutions in Washington.
    At 11:08 a.m. (1508 GMT), the yen was 0.34% higher at
111.125 per dollar and up 0.22% per euro.
    Major U.S. stock indexes were lower with the S&P 500 index
 down 0.55%.
    Brent oil futures were 0.72% lower at $70.59 a
barrel after hitting $71.34 earlier on Tuesday, the highest
since November.
    On Monday, the U.S. Trade Representative proposed a list of
European Union products ranging from large commercial aircraft
and parts to dairy products and wine on which to slap tariffs as
retaliation for European aircraft subsidies.
    The IMF on Tuesday cut its global growth forecasts for 2019
to 3.3%, the slowest expansion since 2016 and from its earlier
projection of 3.5% in January.
    While the IMF reduced its calls on expansion for both Europe
and the United States, the euro held its modest gains versus the
dollar, last up 0.15% at $1.1276.
    "Lots of negativity is already baked into the euro. Today's
developments, while not encouraging, didn't meaningfully add to
the bloc's weak narrative," Manimbo said.
    The latest IMF forecasts, together with the retreat in oil
prices, put pressure on the Australian and Canadian dollars.
Both countries are big commodities producers.
    The Aussie was up 0.08% at $0.7131 after touching a
near three-week high, while the loonie was little
changed at C$1.332 after hitting C$1.3285, its strongest since
March 21.
    Meanwhile, sterling was down 0.06% at $1.3055 after
a German government spokesman denied a media report that
Chancellor Angela Merkel was open to put a time limit on the
Northern Ireland backstop in a Brexit agreement.

========================================================
    Currency bid prices at 11:09AM (1509 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1274        $1.1259     +0.13%         -1.70%      +1.1285     +1.1255
 Dollar/Yen       JPY=        111.1100       111.4700    -0.32%         +0.77%      +111.5700   +110.9900
 Euro/Yen         EURJPY=     125.28         125.55      -0.22%         -0.74%      +125.6200   +125.1700
 Dollar/Swiss     CHF=        1.0001         0.9987      +0.14%         +1.91%      +1.0003     +0.9981
 Sterling/Dollar  GBP=        1.3055         1.3062      -0.05%         +2.34%      +1.3121     +1.3040
 Dollar/Canadian  CAD=        1.3312         1.3313      -0.01%         -2.38%      +1.3329     +1.3281
 Australian/Doll  AUD=        0.7131         0.7126      +0.07%         +1.16%      +0.7152     +0.7119
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1278         1.1247      +0.28%         +0.21%      +1.1278     +1.1245
 Euro/Sterling    EURGBP=     0.8635         0.8622      +0.15%         -3.91%      +0.8644     +0.8595
 NZ               NZD=        0.6744         0.6738      +0.09%         +0.40%      +0.6758     +0.6738
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.5452         8.5443      +0.01%         -1.08%      +8.5635     +8.5234
 Euro/Norway      EURNOK=     9.6332         9.6273      +0.06%         -2.75%      +9.6470     +9.6135
 Dollar/Sweden    SEK=        9.2473         9.2598      -0.04%         +3.16%      +9.2683     +9.2280
 Euro/Sweden      EURSEK=     10.4270        10.4316     -0.04%         +1.59%      +10.4365    +10.4110
    

    
 (Additional reporting by Tommy Wilkes in LONDON
Editing by Susan Thomas)
  
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