FOREX-Dollar rises as trade tensions attract safe-haven bids

as declared in "The dollar seems to have benefited from safe-haven flows ... as trade tensions and political developments in Europe have reduced investors' appetite for risk," said Oliver Jones, market economist at Capital Economics in London. But Jones noted that even if global and trade worries ease, the dollar will remain supported. Latest positioning data remains broadly dollar-supportive and is an extension of themes seen in currency markets in recent days. A rising dollar also translates into tightening financial conditions for broader financial markets given the U.S. currency's dominance in global financing and trading markets. GERMAN CONCERNS The euro fell 0.6 percent to $1.1615 on concerns over political developments in Germany.

FOREX-Dollar rebounds from early lows as trade tensions rise

With tensions rising, the Chinese currency weakened to a fresh six-month low as expectations grew that Beijing will let the yuan weaken more in coming days to soften the impact of trade tariffs by the United States. "A lot of the large bets in currency markets such as long euros or short Swiss francs have been broadly unwound and we are in a very headline driven environment," said Paul Bednarczyk, head of G10 FX at Continuum Economics in London. The dollar rebounded smartly against a basket of currencies from a one-week low hit in Asian trade to rise 0.3 percent on the day at 94.55. The Chinese currency in the offshore market weakened 0.7 percent to 6.5811 yuan per dollar, its lowest level since late-December 2017. The euro edged 0.3 percent lower at $1.1672, extending its recovery from its 11-month low of $1.1508 touched on Thursday.

FOREX-Dollar stays near a 7-month peak, but trade tensions limit gains

as mentioned in The dollar index versus a basket of six major currencies crept up 0.1 percent to 94.862. On top of last week's Fed, ECB and the Bank of Japan policy meetings, the currency markets also weighed a U.S.-North Korea summit and the renewed trade tensions between the world's two biggest economies. "A further escalation of U.S.-China trade tensions is of course a risk scenario. ADVERTISEMENTDespite the slip, the dollar managed to stay in reach of a three-week high of 110.905 yen brushed on Friday. The Canadian dollar traded at C$1.3184 per dollar after retreating to a one-year low of C$1.3210 on Friday.

collected by :John Locas