* Dollar stabilises after wages data blow
* U.S. economy still looks strong, underpinning dollar
* Market weighs Trump comments on financial deregulation
* Aussie slips on weak retail sales data
* Graphic: World FX rates in 2016 tmsnrt.rs/2egbfVh
By Patrick Graham
LONDON, Feb 6 The dollar steadied on Monday
after poor wages data pushed back any speculation of a near-term
rise in Federal Reserve interest rates and sealed the currency's
fourth straight weekly fall, its worst start to a year in more
than three decades.
In a quiet start to the week, the Aussie dollar was the
biggest mover among the G10 group of major currencies, down
almost half a percent after a weaker batch of retail sales
The euro was also a third of a percent weaker, retreating to
$1.0746 compared with last week's seven-week highs above $1.08.
Equity markets, and the overall strength of U.S. economic
data, continue to back the bullish dollar calls that dominated
at the end of last year.
But lack of detail on expected pro-dollar tax and spending
initiatives combined with concern over the Trump White House's
attitude to the dollar and global trade and security has kept
the currency retreating.
"I'd like to hope that we naturally go back to buying the
dollar, that seems the logical argument underneath it all," said
Richard Benson, co-head of portfolio management with currency
fund Millennium Global in London.
"At some point, equities in the U.S. should drag yields
higher. The market is really just looking for another story."
Signs of more inflation and better growth in Europe have
also helped cool any further selling of the euro, although
against that there are the worries of populist challenges in a
series of elections later this year.
France's far-right leader Marine Le Pen began her bid to be
elected president in May on Sunday, promising she alone could
protect the French against Islamic fundamentalism and
German industrial orders saw the biggest monthly increase in
around 2 1/2 years in December, data on Monday showed.
Speculators trimmed their bullish dollar bets for a fourth
straight week through Jan. 31, with net long positions falling
to their lowest since late October, according to data from the
Commodity Futures Trading Commission released on Friday and
calculations by Reuters.
"Dollar bulls are bailing out almost as fast as bond bears,"
Societe Generale strategist Kit Juckes wrote in a morning note.
"Another choppy week in prospect for G10 currencies overall."
For Reuters 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
(Editing by Larry King)