* FX markets still broadly long dollars
* Sterling tanks on Brexit talk concerns, PMI data
* Graphic: World FX rates in 2018 (updates prices)By Saikat ChatterjeeLONDON, Sept 3 (Reuters) - The dollar consolidated near aone-week high against a basket of currencies on Monday astensions around global trade and a continued selloff in emergingmarkets fuelled demand for the greenback.U.S. President Donald Trump said on Saturday there was noneed to keep Canada in the North American Free Trade Agreementand warned Congress not to meddle with the talks to revamp NAFTAor he would terminate the trilateral pact altogether. "Trade tensions are broadly supporting the dollar, but themarket is hardly very conducive of risk," said Viraj Patel, anFX strategist at ING in London.The U.S. currency's status as the chief reserve currencymakes it the primary beneficiary of concern over tradeconflicts. Traders have bought the dollar against the Britishpound and the Canadian dollar among others.The dollar was flat at 95.12 against a basket ofmajor currencies, nearing its highest level since Aug. 27. Ithas gained nearly 7 percent since mid-April when trade tensionsfirst arose.On a positioning basis, markets are firmly in the strongerdollar camp, with net outstanding positions holding just off thehighest levels since January 2017, calculations by Reuters andCommodity Futures Trading Commission data show .Investors are also jittery about emerging markets, many ofwhich are seeing an exodus of capital. Countries such asArgentina and Turkey are already in crisis, with the Argentinepeso falling more than 4 percent on the day against the dollarand the Turkish lira losing 2 percent.Pressures are building elsewhere too, with the Indonesianrupiah hitting a 20-year low and the Indian rupee at a recordlow"It looks like we're going to see another week of dollarstrength against EM ... Add in what should be a strong U.S. jobsreport on Friday and we would expect dollar/EM to push furtherahead," ING analysts told clients, referring to payrolls datadue at the end of the week.
The euro slipped 0.11 percent against the dollarafter data showed euro zone manufacturing growth slowing to anear two-year low in August as optimism dwindled due to thefears of an escalating global trade war. Sterling was the standout loser of the day as new concernsabout Brexit negotiations and weak UK manufacturing datacombined to push the British currency down 0.8 percent.Michel Barnier, the European Union's chief Brexitnegotiator, said he was "strongly opposed" to the Britishgovernment's proposals on future trade ties after it leaves theEU. The pound fell 0.8 percent to $1.2855 and weakened0.8 percent against the euro to 89.80 pence.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Major FRX YTD performance ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Saikat Chatterjee; Editing by Susan Fenton)