FOREX-U.S. dollar touches 3-week high; yen up on renewed trade uncertainty

Reuters

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    * Trump says he has not agreed to roll back tariffs
    * Conflicting U.S.-China trade headlines roil FX market
    * Canada loses jobs; Canadian dollar falls
    * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

 (Adds comments, updates prices)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Nov 8 (Reuters) - The dollar rallied to a three-week high on Friday, getting some safe-haven
bids, as risk appetite for higher-yielding currencies waned with renewed uncertainty about the rollback of
existing tariffs, a major component of a preliminary U.S.-China trade deal.
    The Japanese yen, another safe haven, rose as well.
    U.S. President Donald Trump on Friday further magnified the uncertainty, saying he had not agreed to
roll back tariffs.  urn:newsml:reuters.com:*:nL2N27O0Q7
    His comments came a day after U.S. and Chinese officials reportedly agreed to roll back tariffs on
each others' goods in a "phase one" trade deal if it is completed.  urn:newsml:reuters.com:*:nL3N27N228 
    But a report also on Thursday seemed to contradict that news, with multiple sources saying the
rollback faces fierce internal opposition at the White House and from outside advisers. The idea of a
tariff rollback was not part of the original October "handshake" deal between Chinese Vice Premier Liu He
and Trump, these sources said.  urn:newsml:reuters.com:*:nL2N27N1HN
    "What really has been driving the market is this underlying uncertainty over whether or not we will
get that rollback," said  Brian Daingerfield, head of G10 FX strategy, at Natwest Markets in Stamford,
Connecticut.
    Overall, though, sentiment is likely to remain supportive for risky assets, as efforts are being made
to do a trade deal, which would remove a huge risk to the global economic outlook.
    "The fact that there is some discussion of moving existing tariffs leans more positive," Daingerfield
said.
    White House spokeswoman Stephanie Grisham told Fox Business Network in an interview on Friday that
tariffs could be lifted on Chinese goods if an agreement is reached, but she gave no further details.
 urn:newsml:reuters.com:*:nW1N26F00P
    In afternoon trading, the dollar index rose 0.2% to 98.362  .DXY  after hitting a three-week high, led
by gains against the euro, which dipped 0.3% to $1.1020  EUR= .
    Jonas Goltermann, senior markets economist at Capital Economics in London, believes as trade tensions
persist, the dollar is likely to stay strong.
    "While we don't expect relative interest rates to boost the dollar much further in the near term, we
think that continued trade tensions and a slowing global economy mean that the greenback will rise a bit
further in 2020 despite the fact that on a trade-weighted basis it is already near its highest level since
the early 2000s," Goltermann said.
    The dollar, however, fell 0.1% to 109.17 yen  JPY= 
    The Canadian dollar slid against the greenback after data showed the Canadian job market unexpectedly
stagnated in October, losing 1,800 net positions, while the unemployment rate remained at 5.5%.
 urn:newsml:reuters.com:*:nL2N27O0HT
    The U.S. dollar was last up 0.4% at C$1.3228  CAD=D3 .
    "While today's relatively nondescript report won't have a large impact on expectations about monetary
policy at the Bank of Canada, it does add some weight, on the margin, to the view the Bank could cut rates
in next few months," said Don Curren, market strategist, at Cambridge Global Payments.
    
    ========================================================
    Currency bid prices at 2:51PM (1951 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1020        $1.1049     -0.26%         -3.91%      +1.1055     +1.1017
 Dollar/Yen       JPY=        109.1700       109.2700    -0.09%         -0.99%      +109.4700   +109.0900
 Euro/Yen         EURJPY=     120.31         120.75      -0.36%         -4.68%      +120.8700   +120.2200
 Dollar/Swiss     CHF=        0.9975         0.9948      +0.27%         +1.65%      +0.9977     +0.9944
 Sterling/Dollar  GBP=        1.2781         1.2813      -0.25%         +0.19%      +1.2824     +1.2770
 Dollar/Canadian  CAD=        1.3226         1.3169      +0.43%         -3.01%      +1.3236     +1.3166
 Australian/Doll  AUD=        0.6855         0.6897      -0.61%         -2.75%      +0.6906     +0.6848
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0996         1.0992      +0.04%         -2.29%      +1.1005     +1.0976
 Euro/Sterling    EURGBP=     0.8620         0.8621      -0.01%         -4.05%      +0.8630     +0.8599
 NZ               NZD=        0.6324         0.6364      -0.63%         -5.85%      +0.6381     +0.6323
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.1275         9.1088      +0.21%         +5.65%      +9.1646     +9.1057
 Euro/Norway      EURNOK=     10.0614        10.0645     -0.03%         +1.55%      +10.1185    +10.0555
 Dollar/Sweden    SEK=        9.7037         9.6275      +0.55%         +8.26%      +9.7164     +9.6249
 Euro/Sweden      EURSEK=     10.6969        10.6381     +0.55%         +4.22%      +10.7109    +10.6354
 
 (Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan Oatis and Richard Chang)
 ((gertrude.chavez@thomsonreuters.com; 646-223-6322; Reuters Messaging:
rm://gertrude.chavez.reuters.com@reuters.net))

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