October 29, 2019 / 2:36 PM / 24 days ago

FOREX-Dollar steady against euro, Fed meeting in focus

    * Fed expected to cut rates on Thursday
    * Britain likely to hold election in December
    * Aussie gains on U.S.-China trade deal hopes
    * U.S. consumer confidence fell in October 

 (Updates trading and comments to U.S. market open, new byline,
changes dateline, previous LONDON)
    By Karen Brettell
    NEW YORK, Oct 29 (Reuters) - The dollar was steady against
the euro on Tuesday as investors awaited for the outcome of the
U.S. Federal Reserve meeting on Wednesday, while sterling was
choppy as Britain looked likely to head to an election in
December.
    The Fed is expected to cut rates on Wednesday and investors
will be watching for any indication that further cuts are
likely. Fed policymakers are deeply divided on whether the U.S.
central bank should be cutting rates.
    The dollar may gain if the Fed indicates that further cuts
may not necessarily be forthcoming.
    “We’re looking for a hawkish reaction, which would lean
toward a stronger dollar,” said Mark McComick, North American
head of FX strategy at TD Securities in Toronto.
    “Given that markets are looking for the Fed to prop up the
economy over the coming months, I think them signaling a little
bit of a pause would kind of reinforce some consolidation in the
dollar, especially against euro and sterling which have been
driven by the Brexit euphoria,” he said.
    Increasing optimism that Britain will reach a deal to avoid
a disorderly exit from the European Union has supported the euro
and sterling in recent weeks.
    Britain was heading towards a December election after Prime
Minister Boris Johnson's bet on breaking the Brexit deadlock
with an early vote gained support from opposition parties.

    The EU on Monday agreed to a 3-month flexible delay to
Britain's departure.
    Sterling has gained to $1.2848 from $1.2193 on Oct.
8, but is below a five-month high of $1.3012 reached on Oct. 21.
    The Australian dollar climbed for a third consecutive
session against the greenback on optimism that the U.S. and
China will make progress on reaching a trade agreement.
    U.S. President Donald Trump said on Monday he expected to
sign a significant part of the trade deal with China ahead of
schedule but did not elaborate on the timing.
    The Australian economy is highly correlated to Chinese
economic strength.
    The dollar index against a basket of six major currencies
 fell to session lows after data showed that consumer
confidence unexpectedly fell in October.
 ========================================================
    Currency bid prices at 10:23AM (1423 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1100        $1.1098     +0.02%         -3.22%      +1.1104     +1.1074
 Dollar/Yen       JPY=        108.9400       108.9400    +0.00%         -1.21%      +109.0600   +108.8400
 Euro/Yen         EURJPY=     120.94         120.93      +0.01%         -4.18%      +121.0500   +120.5900
 Dollar/Swiss     CHF=        0.9947         0.9944      +0.03%         +1.36%      +0.9964     +0.9941
 Sterling/Dollar  GBP=        1.2885         1.2862      +0.18%         +1.00%      +1.2897     +1.2808
 Dollar/Canadian  CAD=        1.3062         1.3050      +0.09%         -4.18%      +1.3069     +1.3041
 Australian/Doll  AUD=        0.6857         0.6838      +0.28%         -2.72%      +0.6860     +0.6836
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1042         1.1037      +0.05%         -1.88%      +1.1046     +1.1022
 Euro/Sterling    EURGBP=     0.8613         0.8628      -0.17%         -4.13%      +0.8650     +0.8609
 NZ               NZD=        0.6347         0.6347      +0.00%         -5.51%      +0.6375     +0.6340
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.2545         9.2217      +0.36%         +7.13%      +9.3041     +9.2140
 Euro/Norway      EURNOK=     10.2750        10.2343     +0.40%         +3.73%      +10.3121    +10.2140
 Dollar/Sweden    SEK=        9.7258         9.7021      +0.26%         +8.50%      +9.7488     +9.7017
 Euro/Sweden      EURSEK=     10.7984        10.7700     +0.26%         +5.21%      +10.8045    +10.7706
   
    

 (Editing by Marguerita Choy)
  
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