(Updates prices, adds reaction to Carney)
* Disappointing China trade data heightens global demand
concerns
* ECB seen likely to ease, but investors ponder extent
* BoE's Carney says Brexit will hurt economy
By Anirban Nag
LONDON, March 8 (Reuters) - The safe-haven yen and Swiss
franc rose on Tuesday as downbeat Chinese trade data fuelled
concerns about the state of global demand, weighing on appetite
for riskier assets and currencies.
China's February exports slumped 25.4 percent from a year
earlier while imports dropped 13.8 percent.
The dollar fell 0.4 percent to 112.95 yen JPY= , after
earlier hitting a one-week low of 112.75 yen. The Swiss franc
was up 0.15 percent against both the dollar and the euro CHF=
EURCHF= .
Both currencies tend to outperform during times of financial
market volatility and economic uncertainty as investors in both
regions unwind investments abroad and bring their savings home.
"The disappointing data from China is weighing on risk
sentiment and pushing the dollar lower against the yen," said
Yujiro Goto, currency strategist at Nomura.
The euro was pegged back, giving up earlier gains against
the dollar, and falling 0.5 percent against the yen EURJPY= .
The outlook for the single currency was considerably clouded by
Thursday's policy review by the European Central Bank (ECB).
The ECB is expected to ease policy, but investors are
uncertain about how far it will go. Euro bears are cautious
about positioning for bold action, having been badly burnt
before when the ECB disappointed by choosing to take more modest
easing steps. GVD/EUR
Sterling fell 0.4 percent against the dollar to $1.4210
GBP=D4 with Bank of England Governor Carney warning that a
potential exit by Britain from the European Union would hurt the
economy and prompt some banks to leave London.
ING analyst Viraj Patel recommended investors to sell the
pound against the dollar.
"We think a correction back to $1.4050 is on the cards
should the Brexit risk premium resurface over the coming days,"
he said.
The Australian and Canadian dollars pulled away from
multi-month highs touched on a rally in commodity prices.
Commodity prices, including oil, were subdued on Tuesday.
The Aussie fell 0.4 percent to $0.7444 AUD=D4 after
reaching a high not seen since July of $0.7486 on Monday. The
Canadian dollar climbed as far as C$1.3262 per USD CAD=D4 ,
scaling a peak last seen in November, but the greenback was last
up, 0.5 percent at C$1.3337.