- Mystery buyer keeps the single currency supported above $1.13
- Chinese markets shut for Lunar New Year hold down volatility
- Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Updates market action, changes dateline, previous LONDON)
The dollar held steady against a basket of currencies on Friday, keeping it on track for its strongest weekly gain in seven month, as traders piled into the greenback in a safe-haven move on worries about a weakening global economy.
The euro hovered at a two-week low with support at $1.13. The single currency was briefly set for its steepest weekly drop in four months earlier on Friday in the wake of data that showed
an economic slowdown in Europe was spreading.
"The rally that propelled the dollar broadly higher last year has enjoyed renewed life with U.S. growth remaining solid while peers abroad lose momentum," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.
At 10:35 a.m. ET (1535 GMT), an index that tracks the greenback versus the euro, yen, sterling and three other currencies .DXY was up 0.07 percent at 96.570.
On the week, the ICE dollar index was up nearly 1 percent, which would be its biggest weekly increase since a 1.28 percent jump in the week of Aug. 10, 2018.
The euro was down 0.05 percent at $1.13320, putting its weekly decline at about 0.9 percent.
The European Commission cut its growth and inflation forecasts on Thursday as downside surprises to German and Spanish industrial orders fueled worries about an accelerating slowdown.
Those figure have weighed on local bond markets. Core European government debt yields touched their lowest in over two years. Benchmark German yields were just 10 basis points away from zero percent.
U.S. yields also fell on the week, holding above the lows of their recent trading range.
With Chinese markets closed for Lunar New Year this week, market volatility declined.
For example, implied volatility in the euro, or expected swings in the single currency EURVOL in a month, fell earlier this week to its lowest level since Dec. 2017 before rebounding, according to Refinitiv data.
Anxieties about the global economy were compounded by comments from U.S. President Donald Trump indicating he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal.
That helped the perceived safe-haven currencies such as the Japanese yen JPY=EBS and the Swiss Franc CHF=EBS hold up against the dollar. The dollar was last at 109.75 yen JPY=EBS , while the greenback was down 0.22 percent at 1.00025 Swiss franc.
Sterling GBP=D3 was marginally lower at $1.2947. Traders expect the pound to remain volatile because of the uncertainty surrounding Brexit.
======================================================== Currency bid prices at 10:19AM (1519 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1338 $1.1340 -0.02% -1.14% +1.1352 +1.1322 Dollar/Yen JPY= 109.7100 109.8000 -0.08% -0.50% +109.8900 +109.6600 Euro/Yen EURJPY= 124.41 124.52 -0.09% -1.43% +124.6900 +124.3100 Dollar/Swiss CHF= 0.9999 1.0021 -0.22% +1.89% +1.0027 +1.0000 Sterling/Dollar GBP= 1.2948 1.2953 -0.04% +1.50% +1.2975 +1.2922 Dollar/Canadian CAD= 1.3271 1.3306 -0.26% -2.68% +1.3328 +1.3232 Australian/Doll AUD= 0.7093 0.7099 -0.08% +0.62% +0.7105 +0.7061 arEuro/Swiss EURCHF= 1.1339 1.1364 -0.22% +0.76% +1.1370 +1.1339 Euro/Sterling EURGBP= 0.8756 0.8757 -0.01% -2.54% +0.8765 +0.8743 NZ NZD= 0.6748 0.6746 +0.03% +0.46% +0.6766 +0.6730 Dollar/DollarDollar/Norway NOK= 8.6111 8.5946 +0.19% -0.32% +8.6287 +8.5869 Euro/Norway EURNOK= 9.7648 9.7471 +0.18% -1.42% +9.7746 +9.7322 Dollar/Sweden SEK= 9.2558 9.2612 -0.05% +3.26% +9.2846 +9.2425 Euro/Sweden EURSEK= 10.4950 10.5005 -0.05% +2.25% +10.5150 +10.4870 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC-G10 FX - YTD http//tmsnrt.rs/2UP963y^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
