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FOREX-Dollar softens despite upbeat U.S. data, Fed chair talk
October 25, 2017 / 3:31 PM / a month ago

FOREX-Dollar softens despite upbeat U.S. data, Fed chair talk

    * Home sales, durable goods data fail to lift greenback
    * Support seen for Taylor as Fed chief limits drop for
dollar
    * Canada dollar hits 10-week low after BOC leaves rates
steady
    * Sterling jumps on stronger-than-expected GDP data

 (Updates market action; changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, Oct 25 (Reuters) - The dollar dipped on Wednesday
against a basket of currencies, struggling to post further gains
tied to speculation the next chair of the U.S. Federal Reserve
will steer policy in a more hawkish direction.
    Profit-taking on the greenback emerged as the dollar staged
bounces following releases of surprisingly strong data on
durable goods orders and new home sales in September, analysts
said.
    "The dollar has faded against data that were very good,"
said Greg Anderson, global head of FX strategy at BMO Capital
Markets in New York.
    New orders for U.S. capital goods rose more than forecast by
2.2 percent last month, while new home sales unexpectedly jumped
to a near 10-year high in September.      
    Sterling climbed almost 1 percent against the dollar to an
eight-day high of $1.3259 after stronger-than-expected
U.K. growth data cemented expectations the Bank of England will
raise interest rates next week.
    The Canadian dollar fell to a 10-week low at C$1.2775 to the
greenback after the Bank of Canada as expected left key
overnight interest rates unchanged.
    Despite Wednesday's pullback, the dollar index has gained
0.6 percent in the past week in the aftermath of reports that
Stanford University economist John Taylor impressed U.S.
President Donald Trump in his interview for the Fed's top post.

    Taylor favors a rule-based approach to setting interest
rates and is seen as someone who may put the Fed on a path of
faster interest rate increases compared with Fed Chair Janet
Yellen, whose term expires next February.
    Trump's other possible nominees to head the Fed include
Yellen, Fed Governor Jerome Powell, his economic adviser Gary
Cohn and former Fed Governor Kevin Warsh.
    Trump is expected to announce his Fed chair candidate before
his Asian trip in early November.
    At 11:00 a.m. (1500 GMT), the index tracking the greenback
versus six currencies was down 0.1 percent at 93.68,
holding below a 2-1/2 week high of 94.017 set on Monday.
    The dollar climbed to 114.245 yen, its highest since July 11
, following Sunday's victory for Prime Minister Shinzo
Abe, whose ultra-loose policy should keep pressure on the yen. 
    Australia's dollar tumbled almost 1 percent against its U.S.
counterpart, to a 3-1/2-month low of $0.7699 after
third-quarter consumer price readings fell short of forecast,
reducing expectations of the country's central bank to raise
interest rates in the coming months.    
    The euro gained 0.4 percent at $1.181 before
Thursday's European Central Bank policy meeting, prompted by
expectations it would announce the start of trimming its monthly
asset purchases to 40 billion euros from 60 billion euros in
January.
========================================================
    Currency bid prices at 11:13AM (1513 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1805        $1.1759     +0.39%         +12.29%     +1.1817     +1.1754
 Dollar/Yen       JPY=        113.6500       113.8900    -0.21%         -2.76%      +114.2400   +113.5700
 Euro/Yen         EURJPY=     134.16         133.94      +0.16%         +8.95%      +134.4800   +133.7600
 Dollar/Swiss     CHF=        0.9891         0.9909      -0.18%         -2.82%      +0.9939     +0.9887
 Sterling/Dollar  GBP=        1.3258         1.3134      +0.94%         +7.47%      +1.3270     +1.3111
 Dollar/Canadian  CAD=        1.2792         1.2673      +0.94%         -4.75%      +1.2794     +1.2658
 Australian/Doll  AUD=        0.7698         0.7775      -0.99%         +6.69%      +0.7784     +0.7698
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1678         1.1654      +0.21%         +8.97%      +1.1705     +1.1641
 Euro/Sterling    EURGBP=     0.8904         0.8955      -0.57%         +4.53%      +0.8973     +0.8879
 NZ               NZD=        0.6862         0.6900      -0.55%         -1.14%      +0.6912     +0.6862
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.0258         8.0026      +0.29%         -7.08%      +8.0333     +7.9943
 Euro/Norway      EURNOK=     9.4750         9.4161      +0.63%         +4.28%      +9.4846     +9.4133
 Dollar/Sweden    SEK=        8.2235         8.2192      +0.42%         -9.71%      +8.2572     +8.2071
 Euro/Sweden      EURSEK=     9.7100         9.6693      +0.42%         +1.36%      +9.7165     +9.6690
    

    
 (Additional reporting by Jemima Kelly in London, Masayuki
Kitano in Singapore and Wayne Cole in Sydney; Editing by Jon
Boyle and Chris Reese)
  

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