FOREX-Yen edges higher as markets sceptical about Trump's trade concession

Reuters

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    * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
    * Risk-off rally runs out of steam in Asia
    * Yen edges higher against major currencies
    * FX analysts sceptical about Trump's concession on trade

    By Stanley White
    TOKYO, Aug 14 (Reuters) - The yen edged higher on Wednesday
as currency investors took a sceptical view of U.S. President
Donald Trump's decision to delay additional tariffs on some
Chinese goods.
    The offshore yuan edged slightly lower against the dollar
before the release of closely-watched industrial output and
retail sales data due later in the day.
    The temporary reprieve in the trade war supported risk-off
trades on Tuesday, but analysts warn that the optimism is
already fading as there is no quick solution to the trade row,
which has threatened global economic growth.
    Increasingly violent clashes between protesters and police
in Hong Kong, worries about Britain's exit from the European
Union, and Middle East tensions mean risk aversion could quickly
flare up again and roil major currencies.
    "If we think only about the United States and China, there
could be more room for dollar gains and yen losses, but this
does not mean trade frictions have been resolved," said Tohru
Sasaki, head of Japan markets research at JP Morgan Securities
in Tokyo.
    "There are still a lot of geopolitical risks, such as Hong
Kong, Brexit, and the Iranian situation. I don't expect
significant (risk-on) moves."
    The dollar fell 0.27% to 106.47 yen  JPY=EBS .
    The Australian dollar also fell 0.3% to 72.33 yen  AUDJPY= ,
while the New Zealand dollar fell 0.2% to 72.39 yen.
    Against the offshore yuan  CNH=D4 , the dollar rose 0.2%.
    U.S. President Donald Trump on Tuesday backed off his Sept.
1 deadline for 10% tariffs on remaining Chinese imports,
delaying duties on cellphones, laptops and other consumer goods,
in the hopes of blunting their impact on U.S. holiday sales.
 urn:newsml:reuters.com:*:nL2N2590HM
    Still, trade negotiations between the United States and
China have progressed in fits and starts, so many investors and
analysts have scaled back expectations for a resolution in the
near term.
    The dollar index  .DXY  measuring the greenback against a
basket of six currencies was little changed at 97.783 after
jumping 0.4% on Tuesday.
    The euro  EUR=EBS  was also mostly unchanged, trading at
$1.1148.
    Hong Kong's airport resumed operations on Wednesday,
rescheduling hundreds of flights that had been disrupted over
the past two days as protesters clashed with riot police in a
deepening crisis in the Chinese-controlled city.  urn:newsml:reuters.com:*:nL4N2593HC
    Ten weeks of increasingly violent clashes between police and
pro-democracy protesters, angered by a perceived erosion of
freedoms, have plunged the Asian financial hub into its worst
crisis since it reverted from British to Chinese rule in 1997.
    Traders will closely watch Chinese economic data due later
on Wednesday to measure the impact of the trade war.
    Year-on-year growth in Chinese industrial output and retail
sales are expected to slow in July compared to the previous
month, according to a Reuters poll of economists. China's
government will release the data later on Wednesday.

 (Reporting by Stanley White; Editing by Sam Holmes)
 ((stanley.white@thomsonreuters.com; +81 3 6441 1984
twitter.com/stanleywhite1;))

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