* Dollar steady vs euro, yen
* Currency market awaits Trump's news conference for
By Shinichi Saoshiro
TOKYO, Jan 11 The dollar trod water early on
Wednesday, showing little inclination to move against major
peers such as the euro and yen before U.S. President-elect
Donald Trump fronts a news conference that could set the
market's near-term direction.
The euro was flat at $1.0552 after brushing a 10-day
high of $1.0628 overnight.
The dollar was steady at 115.765 yen. The greenback
has suffered two days of losses against the safe-haven yen as
investors braced for Trump's news conference - his first since
winning the election in November.
Over the past two months, expectations that the Trump
Administration would enact economic stimulus measures backed by
massive fiscal spending have taken Wall Street to record highs,
U.S. debt yields to levels unseen since 2014, and the dollar
index to a 14-year peak.
Against that backdrop, financial markets are keen to see how
Trump will follow through on campaign pledges.
"The dollar is set to resume the Trump rally if he provides
specifics of stimulus measures, notably those related to tax
cuts, which appear achievable," said Junichi Ishikawa, senior FX
strategist at IG Securities in Tokyo.
"On the other hand, the market is also focused on potential
risk factors, like Trump taking a tough stance against China.
That could prompt the dollar to fall against the yen."
The dollar index was little changed at 102.04. Last
week it had reached 103.82, its highest since December 2002,
before pulling back to as low as 101.300.
The pound was steady at $1.2174 after pulling away
overnight from a two-month low of $1.2107. Worries about the
terms of Britain's departure from the European Union have kept
the currency under heavy pressure this week.
The Australian dollar was down 0.1 percent at $0.7361
after popping up to $0.7385 overnight, its highest
(Reporting by Shinichi Saoshiro; Editing by Eric Meijer)