February 28, 2019 / 2:13 PM / 5 months ago

FOREX-Dollar gains vs yen, cuts losses vs euro after U.S. Q4 GDP data

    * U.S. GDP rises 2.6 pct, boosts dollar
    * U.S. data does not alter path of Fed policy-analyst
    * Graphic: World FX rates in 2019: tmsnrt.rs/2egbfVh

 (Recasts, adds comment, U.S. GDP data, FX table, changes
byline, dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Feb 28 (Reuters) - The dollar rose against the yen
and reduced losses versus the euro on Thursday, after U.S. data
showed that growth in the world's largest economy was stronger
than expected in the fourth quarter.
    Prior to the data, the dollar index, a measure of the
greenback's value against six major currencies, had fallen to a
three-week trough.
    According to the Commerce Department report, U.S. gross
domestic product increased at a 2.6 percent annualized rate in
the fourth quarter after expanding at a 3.4 percent pace in the
July-September period. Economists had been expecting growth of
just 2.3 percent.
    The economy grew 2.9 percent in 2018, the best performance
since 2015 and better than the 2.2 percent logged in 2017.
    "The GDP data supported the dollar and confirmed what the
Federal Reserve has been saying all along that the U.S. economy
is still growing at a solid pace, but is facing certain
cross-currents such as slowing global growth and fading fiscal
stimulus," said Eric Viloria, FX strategist at Credit Agricole
in New York.
    He believes, however, that the report does not change the
trajectory of Fed policy.
    "Our economists have been forecasting one more U.S.
(interest rate) hike this year, so there's no real change to
that. The GDP data is not a really surprise to the Fed," Viloria
added.
    In morning trading, the dollar index was little changed at
96.091 after earlier sliding to a three-week low. Traders
said some of its weakness was caused by month-end selling after
a strong month for risky assets.
    Against the yen, the dollar rose 0.1 percent to 111.05 yen
, turning positive after the U.S. GDP data.
    The euro, meanwhile, was up 0.1 percent at $1.1383,
paring gains that took it to a three-week high.
    Core European bond yields hit a three-week high on Wednesday
while a broad indicator of European economic data
ticked higher, rising from an eight-month low hit last month,
suggesting the near-term economic outlook may be improving.
    
    ========================================================
    Currency bid prices at 8:58 AM (1358 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1383        $1.1369     +0.12%         -0.75%      +1.1420     +1.1366
 Dollar/Yen       JPY=        111.1000       110.9800    +0.11%         +0.76%      +111.1300   +110.6600
 Euro/Yen         EURJPY=     126.50         126.19      +0.25%         +0.21%      +126.5200   +125.9000
 Dollar/Swiss     CHF=        0.9956         1.0014      -0.58%         +1.45%      +1.0017     +0.9927
 Sterling/Dollar  GBP=        1.3285         1.3308      -0.17%         +4.14%      +1.3324     +1.3274
 Dollar/Canadian  CAD=        1.3197         1.3154      +0.33%         -3.23%      +1.3207     +1.3141
 Australian/Doll  AUD=        0.7119         0.7138      -0.27%         +0.99%      +0.7166     +0.7118
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1335         1.1385      -0.44%         +0.72%      +1.1388     +1.1330
 Euro/Sterling    EURGBP=     0.8568         0.8542      +0.30%         -4.63%      +0.8586     +0.8538
 NZ               NZD=        0.6815         0.6845      -0.44%         +1.46%      +0.6854     +0.6815
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.5494         8.5460      +0.04%         -1.03%      +8.5598     +8.5154
 Euro/Norway      EURNOK=     9.7343         9.7184      +0.16%         -1.73%      +9.7402     +9.7200
 Dollar/Sweden    SEK=        9.2080         9.2708      -0.54%         +2.72%      +9.2757     +9.1691
 Euro/Sweden      EURSEK=     10.4840        10.5410     -0.54%         +2.14%      +10.5580    +10.4660
 
    
 (Reporting by Gertrude Chavez-Dreyfuss; additional reporting by
Saikat Chatterjee in London; editing by Jonathan Oatis)
  
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