November 4, 2019 / 2:38 PM / 4 months ago

FOREX-Dollar rises vs yen, Swiss franc as risk appetite improves

    * U.S.' Ross says preliminary trade deal may be signed this month
    * Markets await ECB's Lagarde's speech
    * Chinese yuan jumps to 12-week high vs U.S. dollar
    * Graphic: World FX rates in 2019

 (New throughout, updates prices, market activity and comment, adds FX table; new byline, changes
dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Nov 4 (Reuters) - The dollar on Monday was broadly higher against safe-haven currencies such
as the yen and Swiss franc, bolstered by higher risk appetite due to U.S.-China trade hopes and Friday's
generally upbeat U.S. non-farm payrolls report for October.
    "Market trends are being influenced by a better risk mood overall," said Shaun Osborne, chief FX
strategist at Scotiabank in Toronto.  
    He said trade hopes rose on U.S. Commerce Secretary's Wilbur Ross' optimism that a preliminary deal
would be signed this month.
    Licenses for U.S. companies to sell components to China's Huawei Technologies Co "will be forthcoming
very shortly," Ross said in an interview with Bloomberg published on Sunday. He noted the U.S. government
had received 206 requests for licenses.
    The euro slipped as investors awaited Christine Lagarde's first speech as European Central Bank
president. But the single currency remained near its highest levels in weeks after Ross said in the
interview that Washington may not slap tariffs on imported vehicles after "good conversations" with
automakers in the European Union, Japan and Korea.
    Tariffs have already been delayed once by six months, and trade experts say that could happen again.

    Lagarde delivers her first address as ECB chief on Monday, and markets assume she will stick with the
easy policy of her predecessor, Mario Draghi.
    That view was boosted by data showing Germany's manufacturing sector remained stuck in recession and
euro zone factory activity contracted sharply in October.
    In other currencies, the dollar rose 0.2% to 108.44 yen. Against the Swiss franc, another safe
haven, the dollar was up 0.2% at 0.9873 franc.
    World stock markets rallied, denting demand for safe-haven investments, after the world's two largest
economies both said on Friday they had made progress in trade talks. U.S. officials said a Phase-1 deal
could be signed this month.
    The Chinese yuan rose to a 12-week high of 7.0225 against the greenback in the offshore market as risk
sentiment continued to improve.
    An index that tracks the dollar against six major currencies was last up 0.1% at 97.323,
breaching the 200-day moving average of 97.303. 
    Sterling was flat to slightly down at $1.2925, after last month's rally from $1.2200, as
investors wagered there was less risk of a hard Brexit now that an election campaign was underway. 
    Currency bid prices at 9:17AM (1417 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1151        $1.1165     -0.13%         -2.77%      +1.1175     +1.1150
 Dollar/Yen       JPY=        108.4800       108.1700    +0.29%         -1.61%      +108.4900   +108.1900
 Euro/Yen         EURJPY=     120.97         120.80      +0.14%         -4.16%      +121.1000   +120.7800
 Dollar/Swiss     CHF=        0.9875         0.9854      +0.21%         +0.62%      +0.9888     +0.9854
 Sterling/Dollar  GBP=        1.2908         1.2934      -0.20%         +1.18%      +1.2946     +1.2910
 Dollar/Canadian  CAD=        1.3152         1.3134      +0.14%         -3.56%      +1.3160     +1.3129
 Australian/Doll  AUD=        0.6903         0.6913      -0.14%         -2.07%      +0.6925     +0.6901
 Euro/Swiss       EURCHF=     1.1015         1.1003      +0.11%         -2.12%      +1.1035     +1.1003
 Euro/Sterling    EURGBP=     0.8636         0.8631      +0.06%         -3.86%      +0.8645     +0.8622
 NZ               NZD=        0.6422         0.6426      -0.06%         -4.39%      +0.6465     +0.6421
 Dollar/Norway    NOK=        9.1116         9.0890      +0.25%         +5.47%      +9.1189     +9.0761
 Euro/Norway      EURNOK=     10.1597        10.1480     +0.12%         +2.58%      +10.1722    +10.1330
 Dollar/Sweden    SEK=        9.5970         9.5621      +0.27%         +7.06%      +9.6004     +9.5415
 Euro/Sweden      EURSEK=     10.7027        10.6740     +0.27%         +4.27%      +10.7070    +10.6610
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Olga Kotaga in London; Editing by David
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