Foreign exchange-Dollar gives again some gains from US-China trade offer optimism – Reuters

* Dollar jumps to two-week high vs Japanese yen

* Euro shut to 11-working day reduced vs greenback

* Graphic: Globe Fx fees in 2019

By Olga Cotaga

LONDON, Nov 26 (Reuters) – The U.S. greenback gave up previously gains as some of the optimism around a U.S.-China trade agreement pale.

The U.S. currency experienced jumped to a two-week high from the secure-haven Japanese yen in Asian trading.

Chinese Vice Premier Liu He, U.S. Trade representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin mentioned issues connected to phase just one of a trade agreement and agreed to maintain conversation on remaining issues.

On Monday, China’s World wide Moments, a tabloid operate by the ruling Communist Party’s official People’s Every day, claimed the two nations around the world ended up very shut to a phase-just one offer.

The greenback was final trading neutral at 108.96 yen, just after climbing as high as 109.205, its greatest because Nov. twelve.

The euro was also flat versus the greenback at $one.1016 , not far from the 11-working day reduced of $one.1004 it achieved on Monday.

The Chinese yuan — the currency most delicate to the U.S.-China trade war — experienced risen to a just one-week high of 7.0181 from the greenback, but was final trading at 7.0335.

“China and U.S. agreed on a framework to take care of their phase- just one concern, which is just a way of saying that they did admin work,” claimed Sebastien Galy, senior macro strategist at Nordea Asset Management.

The following deadline for market participants to view is Dec. fifteen, according to analysts. That is when the U.S. threatened to impose fifteen% tariffs on $one hundred sixty billion of imports from China.

“China seems good to the offer. The greenback could increase further more to close to 109.fifty (yen) if U.S. officials will visit China,” claimed Yukio Ishizuki, senior strategist at Daiwa Securities.

Previous week, the Chinese government invited Lighthizer and Mnuchin to Beijing for face-to-face talks, the Wall Avenue Journal noted.

Overall, currency trading is slowing ahead of the U.S. Thanksgiving vacation on Thursday.

Traders are also significantly pricing in tighter trading ranges for big currencies, centered on implied volatilities.

A person-thirty day period euro/greenback implied volatility has fallen to 4.fifteen/4.forty%, the lowest in five a long time. A few-thirty day period volatility fell to a history reduced of 4.4/4.6%.

The greenback/yen’s 3-thirty day period volatility also stood at 4.775/5.025%, the lowest because late April and in the vicinity of its historic lows higher than 4%. A few-thirty day period volatility on the Australian greenback dropped to a five-year reduced of 6.twelve/6.42% .

Reporting by Olga Cotaga more reporting by Hideyuki
Sano in Tokyo modifying by Larry King

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