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The dollar eased and global equity markets surged on Tuesday after reassurances on the U.S.-Sino trade deal and upbeat economic data from the United States and Europe brightened the prospect of a swift economic recovery.

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 凯发真人在线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)

The dollar eased and global equity markets surged on Tuesday after reassurances on the U.S.-Sino trade deal and upbeat economic data from the United States and Europe brightened the prospect of a swift economic recovery.

* World FX rates in 2020 http://tmsnrt.rs/2egbfVh (Updates to U.S. market open)

The euro jumped to one-week high following positive economic data on Tuesday and higher-risk currencies, including the Australian dollar, were boosted after U.S. officials confirmed that the U.S.-China trade deal is intact. The euro bounced after data showed that a downturn in the euro zone economy eased again this month. 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 was 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. They are encouraging “in the sense that growth is rebounding a bit faster than markets expected.” Investors are weighing better-than-expected economic data against the growth 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 was then boosted after he 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 0.67% on the day at $1.1333, after getting as high as $1.1337, the highest since June 16. The Australian dollar jumped 0.75% to $0.6957, after earlier reaching $0.6973, also the highest since June 16. The dollar 0.59% against the yen to 106.24 yen, the weakest since May 8. 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 凯发真人在线homes increased more than expected in May. Currency bid prices at 10:01AM (1401 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1333 $1.1258 +0.67% +1.10% +1.1337 +1.1234 Dollar/Yen JPY= 106.2400 106.8700 -0.59% -2.41% +107.2100 +106.2500 Euro/Yen EURJPY= 120.43 120.36 +0.06% -1.25% +121.0900 +119.9300 Dollar/Swiss CHF= 0.9433 0.9475 -0.44% -2.53% +0.9493 +0.9435 Sterling/Dollar GBP= 1.2487 1.2461 +0.21% -5.82% +1.2511 +1.2433 Dollar/Canadian CAD= 1.3510 1.3520 -0.07% +4.04% +1.3570 +1.3486 Australian/Doll AUD= 0.6957 0.6905 +0.75% -0.91% +0.6973 +0.6859 ar Euro/Swiss EURCHF= 1.0690 1.0670 +0.19% -1.49% +1.0711 +1.0661 Euro/Sterling EURGBP= 0.9072 0.9029 +0.48% +7.31% +0.9078 +0.9020 NZ NZD= 0.6517 0.6478 +0.60% -3.25% +0.6524 +0.6438 Dollar/Dollar Dollar/Norway NOK= 9.4811 9.6015 -1.25% +8.00% +9.6858 +9.4739 Euro/Norway EURNOK= 10.7446 10.8018 -0.53% +9.22% +10.8890 +10.7258 Dollar/Sweden SEK= 9.2679 9.3687 -0.40% -0.85% +9.4137 +9.2680 Euro/Sweden EURSEK= 10.5050 10.5476 -0.40% +0.32% +10.5795 +10.4918 (Additional reporting by Olga Cotaga in London; Editing by Dan Grebler)

The Norwegian crown has bounced back from March selloffs and with its central bank already outlining plans to raise interest rates, it looks set for more gains.

* Australian dollar rises to 1-week high, after slipping earlier

Britain will "tailor" capital rules for insurers inherited from the European Union as it takes back control of its crucial financial services sector, finance minister Rishi Sunak said on Tuesday.

World stocks and risk currencies rallied on Tuesday on encouraging global economic data and assurances from U.S. President Donald Trump that the U.S.-China trade deal remained "fully intact" after confusion over its fate had emerged.

Britain set out how it intends to approach regulatory issues in the financial services sector now that it has left the European Union, saying that it would make reforms to maintain the soundness of capital markets and manage future risks.