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FOREX-Dollar flat after hitting one-month peak on upbeat U.S. data
February 15, 2017 / 4:52 PM / 7 months ago

FOREX-Dollar flat after hitting one-month peak on upbeat U.S. data

* Greenback hits 1-month peak after upbeat U.S. data
    * Dollar on best winning streak in daily terms since 2012
    * Fed's Yellen offers no fresh clues on rates before
lawmakers

 (New throughout, updates market activity, new byline, changes
dateline, previous LONDON)
    By Richard Leong
    NEW YORK, Feb 15 (Reuters) - The dollar was flat on
Wednesday as investors took profits after it reached a one-month
high early in the session versus a group of currencies as U.S.
data showed robust growth in retail sales and consumer prices in
January.
    The greenback was on track for its 11th straight day of
gains, then retreated as U.S. Federal Reserve Chair Janet
Yellen, in her second day of economic testimony before Congress,
offered no additional insight on the timing of the central
bank's next rate hike.
    On Tuesday, Yellen hinted more rate increases were on the
way as the jobs market has improved and inflation has shown
signs of nearing the Fed's 2 percent goal. 
    She cautioned the number of rate hikes partly hinges on the
impact from possible tax cuts, infrastrucuture spending and
looser regulaton from U.S. President Donald Trump and the
Republican-controlled Congress. 
    "With the timing of rate hikes, there is some hesitation in
the market," said Sebastien Galy, currency strategist at
Deutsche Bank in New York.
    The dollar index, which measures the currency against
its six major peers, was flat at 101.19. It had rallied to a
session high of 101.76, its highest since Jan. 12 as data showed
a stronger-than-forecast 0.4 percent increase in retail sales in
January and a 0.6 percent jump in consumer prices last month,
their biggest gain in nearly four years. 
 
    "There was not enough momentum so people are taking some
profits," Galy said.
    The futures market implied traders have priced in only a 27
percent chance of a rate increase at the Fed's March 14-15
policy meeting and less than a 50 percent chance the Fed
would raise rates three times in 2017, according to the
CME Group's FedWatch program. 
    Not all U.S. data were encouraging with industrial output
and a gauge on home builder sentiment taking unexpected spills.
    The euro rebounded from an one-month low against the
greenback, last up 0.1 percent at $1.0587, while the dollar
hovered near a two-week high versus the yen, last at 114.26 yen.
 
========================================================
    Currency bid prices at 11:36AM (1636 GMT)
 Description      Last           U.S. Close  Pct Change
                                  Previous   
                                  Session    
 Euro/Dollar      $1.0588        $1.0577     +0.10%
 Dollar/Yen       114.2600       114.2500    +0.01%
 Euro/Yen         121.00         120.81      +0.16%
 Dollar/Swiss     1.0066         1.0055      +0.11%
 Sterling/Dollar  1.2465         1.2467      -0.02%
 Dollar/Canadian  1.3076         1.3075      +0.01%
 Australian/Doll  0.7698         0.7660      +0.50%
 ar                                          
 Euro/Swiss       1.0659         1.0643      +0.15%
 Euro/Sterling    0.8493         0.8480      +0.15%
 NZ               0.7192         0.7166      +0.36%
 Dollar/Dollar                               
 Dollar/Norway    8.3425         8.3974      -0.65%
 Euro/Norway      8.8359         8.8795      -0.49%
 Dollar/Sweden    8.9191         8.9291      -0.02%
 Euro/Sweden      9.4453         9.4475      -0.02%
 
    
 (Additional reporting by Patrick Graham in London; Editing by
David Gregorio)

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