April 18, 2018 / 3:34 PM / 5 months ago

FOREX-Dollar holds steady as solid earnings support U.S. stocks

    * Euro zone, UK CPI data weaker than expected
    * Canadian dollar weakens as Bank of Canada leaves rates
unchanged

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, April 18 (Reuters) - The U.S. dollar held steady
versus a basket of currencies on Wednesday, as solid company
results and fading concerns about a trade war renewed investor
purchases of U.S. stocks, keeping a lid on safe-haven demand for
the greenback.
    The dollar also has found support from relatively stronger
economic figures than those seen in Europe and other developed
markets, as well as reduced fears that Western air strikes on
Syria would intensify.
    Nevertheless, the greenback remains on a bearish path on
expectations that the U.S. trade and federal deficits would
balloon in the coming quarters, many analysts said.
    "Once we get away from this period of risk-off, we are still
on the regime that the dollar is weakeninng," said Ilya
Gofshteyn, global macro strategist at Standard Chartered in New
York.
    The dollar index, which tracks the greenback against
a basket of six currencies, edged up 0.04 percent, to 89.556. It
has moved in a narrow range between 89.229 and 90.597 since
March 28.
    On Wall Street, the Dow Jones Industrial Average rose
7.44 points, or 0.03 percent, to 24,794.07, the S&P 500
gained 8.93 points, or 0.33 percent, to 2,715.32 and the Nasdaq
Composite added 25.45 points, or 0.35 percent, to
7,306.54.
    The euro was last up 0.06 percent, at $1.2377, while 
   the greenback was 0.25 percent higher, at 107.25 yen. 
    Among other G10 currencies, the pound was down 0.4 percent
at $1.423 after it was nudged away from a post-Brexit
referendum 22-month high of $1.4377 on Tuesday by
weaker-than-expected British wage data.
    Markets were still pricing in a more than even chance the
Bank of England will hike interest rates in May, expectations of
which have helped sterling advance aggressively this month.

    The Canadian dollar fell 0.8 percent to C$1.2646 per dollar
 after the Bank of Canada, as expected, left key rates
unchanged, but the tone in its policy statement was not as
hawkish as some traders had expected.
========================================================
    Currency bid prices at 11:23AM (1523 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.2380        $1.2370     +0.08%         +3.20%      +1.2397     +1.2343
 Dollar/Yen       JPY=        107.2500       106.9900    +0.24%         -4.81%      +107.3800   +107.0100
 Euro/Yen         EURJPY=     132.80         132.35      +0.34%         -1.76%      +132.9000   +132.3500
 Dollar/Swiss     CHF=        0.9666         0.9660      +0.06%         -0.79%      +0.9698     +0.9651
 Sterling/Dollar  GBP=        1.4225         1.4286      -0.43%         +5.28%      +1.4314     +1.4174
 Dollar/Canadian  CAD=        1.2635         1.2545      +0.72%         +0.46%      +1.2656     +1.2548
 Australian/Doll  AUD=        0.7786         0.7764      +0.28%         -0.19%      +0.7797     +0.7745
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1968         1.1951      +0.14%         +2.39%      +1.1986     +1.1951
 Euro/Sterling    EURGBP=     0.8701         0.8656      +0.52%         -2.05%      +0.8722     +0.8644
 NZ Dollar/Dolar  NZD=        0.7328         0.7341      -0.18%         +3.42%      +0.7344     +0.7305
 Dollar/Norway    NOK=        7.7473         7.7599      -0.16%         -5.60%      +7.7837     +7.7417
 Euro/Norway      EURNOK=     9.5930         9.6008      -0.08%         -2.60%      +9.6195     +9.5937
 Dollar/Sweden    SEK=        8.3885         8.4021      -0.05%         +2.28%      +8.4267     +8.3746
 Euro/Sweden      EURSEK=     10.3883        10.3936     -0.05%         +5.58%      +10.4090    +10.3787
    

    
 (Additional reporting by Tom Finn in LONDON
Editing by Catherine Evans and Jonathan Oatis)
  
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