June 27, 2019 / 2:45 PM / 4 months ago

FOREX-Dollar on hold as market awaits news from G20 summit

    * U.S., China have agreed to tentative trade truce -SCMP
    * Dollar on track for first quarter loss since Q1 2018
    * Yen posts solid gain vs greenback in second quarter 
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, June 27 (Reuters) - The dollar held steady against
most major currencies on Thursday as traders moved to the
sidelines in advance of this weekend's G20 summit where China
and the United States may reach a truce on their trade conflict.
    The world's two largest economies have agreed to a tentative
truce in their trade dispute, Hong Kong's South China Morning
Post cited sources as saying. U.S. President Donald Trump and
Chinese President Xi Jinping are scheduled to meet on Saturday.

    The report eased fears that Trump would impose additional
tariffs on $300 billion on Chinese goods, but financial markets
remain on edge about the unpredictable trade talks, analysts and
traders said.
    "It's just a lot of noise until there is a deal," said Minh
Trang, senior foreign exchange trader at Silicon Valley Bank at
Santa Clara, California. "We are in a holding pattern."
    Traders shrugged off a U.S. government report that showed
the economy expanded at 3.1% in the first quarter, unchanged
from its reading last month.
    At 10:24 a.m. (1424 GMT), an index that tracks the dollar
against the euro, yen, sterling and three other currencies
 was up 0.01% at 96.219, holding above a three-month low
of 95.843 reached on Tuesday.
    The index broke below its 200-day moving average last week,
which analysts cite as bearish for the dollar, after the Federal
Reserve signaled it was prepared to lower interest rates to
combat the risk from global trade tensions and sluggish domestic
inflation.
    The dollar index was on track for it first quarterly loss
since the first quarter of 2018.
    China's offshore yuan rose 0.16% to 6.8771 per dollar
, helping the renminbi back towards a six-week high of
6.8370 yuan per dollar touched last week.
    The offshore yuan, however, has weakened 2.26% in the second
quarter.
    Whether Trump and Xi strike a trade truce this weekend could
shape expectations on Fed policy in the coming months, analysts
said.
    Traders have priced in the probability the Fed would lower
rates in July and might cut rates at least three times by
year-end, according to interest rates futures calculated by CME
Group's FedWatch program.
    The yen edged down 0.04% to 107.825 yen per dollar. The
Japanese currency has risen a solid 2.7% against the greenback
in the second quarter, boosted by expectations of Fed rate cuts
and the trade war. Rising tensions between Iran and the United
States has also stoked safe-haven demand for the Japanese
currency.
========================================================
    Currency bid prices at 10:24AM (1424 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1365        $1.1368     -0.03%         -0.91%      +1.1381     +1.1349
 Dollar/Yen       JPY=        107.8000       107.7700    +0.03%         -2.23%      +108.1500   +107.6600
 Euro/Yen         EURJPY=     122.52         122.52      +0.00%         -2.93%      +122.8800   +122.4300
 Dollar/Swiss     CHF=        0.9771         0.9780      -0.09%         -0.44%      +0.9814     +0.9768
 Sterling/Dollar  GBP=        1.2687         1.2688      -0.01%         -0.54%      +1.2724     +1.2670
 Dollar/Canadian  CAD=        1.3121         1.3125      -0.03%         -3.78%      +1.3138     +1.3110
 Australian/Doll  AUD=        0.6999         0.6983      +0.23%         -0.71%      +0.7001     +0.6984
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1107         1.1116      -0.08%         -1.31%      +1.1144     +1.1105
 Euro/Sterling    EURGBP=     0.8957         0.8958      -0.01%         -0.30%      +0.8965     +0.8938
 NZ               NZD=        0.6693         0.6678      +0.22%         -0.36%      +0.6696     +0.6672
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.5200         8.4939      +0.31%         -1.37%      +8.5247     +8.4902
 Euro/Norway      EURNOK=     9.6848         9.6559      +0.30%         -2.23%      +9.6933     +9.6545
 Dollar/Sweden    SEK=        9.2777         9.2607      +0.16%         +3.50%      +9.2911     +9.2529
 Euro/Sweden      EURSEK=     10.5450        10.5280     +0.16%         +2.74%      +10.5555    +10.5212
 
    
 (Reporting by Tommy Wilkes in LONDON
Editing by Larry King, Hugh Lawson and David Gregorio)
  
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