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FOREX-Euro rises on upbeat data, Trump says China trade deal still intact

Karen Brettell and Noel Randewich

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Updates prices, adds detail on economic indicators) By Karen Brettell and Noel Randewich NEW YORK, June 23 (Reuters) - The euro jumped to one-week highs following positive economic data on Tuesday, while the Australian dollar and other higher-risk currencies strengthened after U.S. officials confirmed that the U.S.-China trade deal remained intact. The euro bounced following a sign of recovery this month in the euro zone economy's downturn caused by the coronavirus pandemic. IHS Markit's Flash Composite Purchasing Managers' Index (PMI), seen as a good gauge of economic health, recovered to 47.5 from May's 31.9, moving closer to the 50 mark separating growth from contraction. In April it hit a record low 13.6. “The story in the G10 is the euro zone PMIs coming in above expectations,” said Vassili Serebriakov, an FX and macro strategist at UBS in New York. Those economic readings are encouraging “in the sense that growth is rebounding a bit faster than markets expected.” Investors are weighing better-than-expected economic data against increases in new cases of the coronavirus in certain areas across the globe. The greenback had briefly gained overnight on safety buying after White House trade adviser Peter Navarro said the U.S.-China trade pact was "over." Risk sentiment got a boost after Navarro walked back those remarks, saying they were taken out of context. U.S. President Donald Trump later confirmed in a tweet that the deal with China was "fully intact." "We expect limited further fallout, with President Trump expected to remain committed to the phase one trade deal in the run up to the election," said Lee Harman, currency analyst at MUFG. "However, last night’s price action does highlight that the FX market remains sensitive to trade policy uncertainty. It remains a potential trigger for higher volatility," he said. The euro was last up 0.46% on the day at $1.1310, after getting as high as $1.1337, the highest since June 16. The Australian dollar jumped 0.42% to $0.6934, after earlier reaching $0.6973, also the highest since June 16. The dollar slipped 0.37% against the yen to 106.4700 yen, after getting as low as 106.06 yen, the weakest since May 7. U.S. data on Tuesday showed that U.S. business activity contracted for a fifth straight month in June, while sales of new U.S. single-family homes increased more than expected in May. Better-than-expected U.S. macroeconomics reports have elevated Citi's U.S. economic surprise index to record highs and emboldened expectations that a recovery from the slump caused by the coronavirus pandemic may not take as long as some analysts feared. Currency bid prices at 14:56 pm ET (1856 GMT) Description RIC Last U.S. Close Pct YTD Pct High Bid Low Bid Previous Change Change Session Euro/Dollar EUR= $1.1310 $1.1258 +0.46% +0.89% +1.1348 +1.1234 Dollar/Yen JPY= 106.4700 106.8700 -0.37% -2.19% +107.2100 +106.0800 Euro/Yen EURJPY= 120.44 120.36 +0.07% -1.24% +121.0900 +119.9300 Dollar/Swiss CHF= 0.9446 0.9475 -0.31% -2.40% +0.9493 +0.9421 Sterling/Dollar GBP= 1.2520 1.2461 +0.47% -5.57% +1.2531 +1.2433 Dollar/Canadian CAD= 1.3538 1.3520 +0.13% +4.25% +1.3570 +1.3486 Australian/Doll AUD= 0.6934 0.6905 +0.42% -1.25% +0.6974 +0.6859 ar Euro/Swiss EURCHF= 1.0687 1.0670 +0.16% -1.52% +1.0711 +1.0661 Euro/Sterling EURGBP= 0.9032 0.9029 +0.03% +6.84% +0.9078 +0.9020 NZ NZD= 0.6494 0.6478 +0.25% -3.59% +0.6532 +0.6438 Dollar/Dollar Dollar/Norway NOK= 9.5051 9.6015 -1.00% +8.28% +9.6858 +9.4610 Euro/Norway EURNOK= 10.7539 10.8018 -0.44% +9.31% +10.8890 +10.7160 Dollar/Sweden SEK= 9.2878 9.3687 -0.38% -0.64% +9.4137 +9.2561 Euro/Sweden EURSEK= 10.5070 10.5476 -0.38% +0.36% +10.5795 +10.4918 (Additional reporting by Olga Cotaga in London; Editing by Dan Grebler and Chizu Nomiyama)