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FOREX-Euro buoyant on improved economic views, awaits euro zone PMI


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* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

* Euro up after upbeat China data further lifts risksentiment

* Euro zone PMI awaited for next cues

TOKYO, April 18 (Reuters) - The euro was buoyant on Thursdayafter more evidence of strength in China improved the outlookfor the global economy, with the market looking next to Europeanindicators to provide the currency with a further boost.

The euro was a shade higher at $1.1298EUR= , having ekedout a gain of 0.1 percent the previous day.

The single currency has steadily recovered from a recent lowof $1.1183 plumbed at the start of April.

The euro was lifted after data on Wednesday showed China'seconomy grew at a steady 6.4 percent pace in the first quarter,defying expectations for a further slowdown, as industrialproduction surged and consumer demand showed signs ofimprovement. urn:newsml:reuters.com:*:nL3N21Z0OK

"A recovering Chinese economy is also good news for theGerman economy, and thus positive for the euro. The ongoingsurge in bund yields amid 'risk on' is a key factor supportingthe euro," said Junichi Ishikawa, senior FX strategist at IGSecurities in Tokyo.

The 10-year German bund yield DE10YT=RR rose to aone-month high of 0.10 percent overnight, in a sharp reboundfrom a 2-1/2-year low of minus 0.094 percent set at the end ofMarch.

Bund yields had sunk in March as concerns about slowingglobal growth gripped the broader market. Investors are nowwatching Chinese and European economic data for signs that theglobal economy is performing better than initially feared.

The Purchasing Managers Indexes (PMIs) for the manufacturingand service sectors in Europe due later on Thursday will providethe next indication of strength for the European economy.

"Data from China cleared the way for the euro, which needsfollow through support in the form of strong euro zoneindicators," Ishikawa at IG Securities said.

The dollar index against a basket of six major currencieswas flat at 97.015 .DXY after dipping 0.05 percent theprevious day.

The U.S. currency was steady at 112.035 yenJPY= afterbriefly touching a four-month peak of 112.17 on Wednesday amid abounce in U.S. Treasury yields to a one-month high.

Commodity-linked currencies sagged after a surge in crudeoil prices ran out of steam.

The Canadian dollar stood at C$1.3352CAD=D4 per dollar,having pulled back from a one-month high of C$1.3275 brushed onWednesday.

The Australian dollar was down 0.1 percent at $0.7173AUD=D4 after popping up to a two-month peak of $0.7206 theprevious day in response to the stronger-than-expected Chineseeconomic growth data. (Editing by Jacqueline Wong) ((shinichi.saoshiro@thomsonreuters.com; Reuters Messaging:shinichi.saoshiro.reuters.com@reuters.net))






This article appears in: Stocks , World Markets , Politics
Referenced Symbols: EUR



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