* Dollar limps to worst week in two months
* China trade data softer than expected
* U.S. retail sales data due at 1330 GMT, seen higher
* Sterling volatility gauge jumps on PM Brexit speech
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Marc Jones
LONDON, Jan 13 The dollar was limping towards
registering its weakest week in two months on Friday as
softer-than-expected trade data from China added to signs that
investors may be falling out of love with the post-U.S. election
The dollar index, which measures the currency against
six other major currencies, was down fractionally for a third
straight day and 1 percent lower on the week as focus turned to
U.S. retail sales due at 1330 GMT.
Against the yen the dollar stood at 114.7 yen,
having given up the modest ground it made in Asia, while the
euro clawed up to $1.0630 to bolster a fourth straight
week of gains against the U.S. currency.
The greenback was still hobbled by disappointment that
President-elect Donald Trump hadn't touched on fiscal stimulus
at a news conference on Wednesday and instead talked about
divisive plans such as building a wall on the border with
"Everybody is waiting for U.S. retail sales now but it has
been an interesting week," Credit Agricole CIB FX Strategist
Manuel Oliveri said.
"It more or less shows that we need a little bit more detail
from Donald Trump when he comes in on his economic agenda."
More Federal Reserve members talked on Thursday about rate
hikes and trimming the size of the central bank's balance sheet
, while U.S. retail sales data could give a jolt
later if they come in far off forecast.
A Reuters poll shows that economists expect a 0.7 percent
pickup in retail sales in December, following 0.1 percent growth
"Medium term we should still see a stronger dollar," said
James Binny, head of currency with State Street Global Advisors
in London. "The positions were just so one-way and we needed a
bit of a clearout to make some further progress."
The week's other main G10 loser, sterling, remained shaky on
Friday as it was confirmed that Prime Minister Theresa May would
give a speech on Tuesday on Britain's plan to leave the European
One-week implied sterling volatility - options contracts
which allow traders to bet or hedge against near-term swings in
the currency, spiked to their highest since October at 14.775
It was also set to be the pound's worst week against the
euro since the start of October. It ticked down to 87.36 pence
per euro on Friday but was down almost 2 percent
from where it had started the week.
Against the dollar it was a touch higher on the day, though,
at $1.2184 having briefly popped above $1.22 earlier.
But it was firmly on course for its fifth weekly drop in the
last six, having hit a three-month low of $1.2038 on Wednesday.
For Reuters new Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Reporting by Marc Jones; Editing by Andrew Heavens and Hugh