© Reuters. FILE PHOTO: A picture illustration shows Euro and U.S. Dollar banknotes in Sarajevo
By Tommy Wilkes
LONDON (Reuters) – The euro rallied and risked currencies like the Australian dollar strengthened on Monday as optimism over a breakthrough in US-China trade was The Federal Reserve wants to raise US dollar interest rates again this year.
But after dropping to a three-month low on Friday, the euro has recovered, helped by improved investor sentiment as hopes rose for an end to the US-China trade conflict talks.
The dollar, the world's most liquid currency, tends to perform well during bouts of investor nervousness.
"Generally the mood is quite positive on the outlook for trade," said Adam Cole, a currencies analyst at RBC Capital Markets, adding that he thought the "risk-on" mood would continue.
However, he said, "The Fed's pausing of rate increases." what in dollar / yen, as more Japanese investors choose not to hedge purchases of dollar-denominated assets which already earn a decent yield after 201
Cole since dollar / yen rising to 120 yen per dollar by the end of 2019 from current levels of 110.55.
The euro ticked 0.3 percent higher to $ 1.1328, while the, which measures the U.S. unit against a basket of rivals, slipped 0.2 percent to 96,687 in a quiet session with Markets closed for a holiday on Monday.
Despite Monday's gains, traders are betting on a weaker euro in the coming months.
Commerzbank (DE) analysts said the single currency remained so vulnerable to any flare-up in a US dollar bankruptcy and political uncertainty. European trade dispute
"The smallest economic disruptions would not be the case for the euro zone economy, "they wrote.
The Australian dollar, considered a barometer of global risk sentiment, rose 0.2 percent to $ 0.7154.
Emerging market currencies.
$ 1.2918, up from last week's one-month lows as investors awaiting the outcome of talks between Britain and the European Union, with London trying to convince were mixed.
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