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FOREX-Euro advances as ECB eases strong-currency worries

    * Euro gains for 3rd straight day vs dollar
    * Dollar index poised for second week of gains on equity
    * ECB's Lane reiterates concerns about strong euro
    * Sterling reaches new 5-1/2-month low vs euro on Brexit
    * Graphic: World FX rates in 2020

 (Recasts, adds new comment, FX table, U.S. data, changes
byline, dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Sept 11 (Reuters) - The euro rose for a third
straight session against the dollar on Friday, with investors
encouraged to push it higher after the European Central Bank
showed no sign of stemming the single currency's appreciation.
    At a press conference on Thursday, ECB President Christine
Lagarde said the bank is not targeting exchange rates. She also
struck a less dovish tone on the euro zone economy, as the ECB
lifted its growth forecast for 2020.
    After Lagarde's briefing, sources said policymakers had
agreed to look through the euro's rise, judging it was broadly
in line with economic fundamentals.
    On Friday, however, ECB policymakers, including chief
economist Philip Lane, warned against complacency over low
inflation and highlighted risks from a strong euro, nuancing the
bank's benign message from a day earlier.
    "There is a feeling here that it's okay for the euro to be
around $1.1750-$1.1850. If it hits $1.1950, it probably starts
swinging down," said Juan Perez, currency trader at Tempus Inc
in Washington.
    "Overall, ECB policymakers seem to be saying that let's not
overreact about the euro exchange rate," he added.
    In mid-morning trading, the euro rose 0.3% to $1.1840
. It reached $1.1917 on Thursday, a one-week high.
    The dollar index, which tracks the greenback against
other major currencies, slipped 0.1% to 93.277. The index though
was poised for a second week of gains.
    The dollar was little changed against the yen at 106.12 yen
    Data showing a rise in U.S. consumer prices last month had
little impact on the dollar.
    The Labor Department said on Friday its consumer price index
rose 0.4% last month. The CPI advanced 0.6% in June and July
after declining the prior three months as business closures to
slow the spread of the coronavirus depressed demand.

    "When market participants compare the tone of the ECB
with the Fed’s formal shift to allow greater inflation, the
market remains encouraged to sell the dollar," said Derek
Halpenny, head of research at MUFG.
    "But the euro/dollar correction back from 1.1900 after the
ECB press conference does indicate that dollar selling may still
have reached its limits for now," Halpenny said.
    Elsewhere, the pound slipped 0.1% against the dollar to
$1.2792, and sank to a fresh 5-1/2-month low of 92.90
pence versus the euro, adding more losses after the
heaviest sell-offs seen this year sent the pound falling nearly
2% against the euro on Thursday.
    As the Brexit saga intensifies, sterling was on course for
its worst week since March when forex markets were going through
a coronavirus-induced turmoil.
    Currency bid prices at 10:14AM (1414 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1841        $1.1813     +0.24%         +5.63%      +1.1874     +1.1814
 Dollar/Yen       JPY=        106.1200       106.1300    -0.01%         -2.52%      +106.2600   +106.0900
 Euro/Yen         EURJPY=     125.66         125.37      +0.23%         +3.04%      +126.1200   +125.3900
 Dollar/Swiss     CHF=        0.9094         0.9104      -0.11%         -6.03%      +0.9108     +0.9080
 Sterling/Dollar  GBP=        1.2801         1.2803      -0.02%         -3.45%      +1.2864     +1.2765
 Dollar/Canadian  CAD=        1.3182         1.3190      -0.06%         +1.52%      +1.3194     +1.3151
 Australian/Doll  AUD=        0.7289         0.7256      +0.45%         +3.82%      +0.7305     +0.7252
 Euro/Swiss       EURCHF=     1.0768         1.0758      +0.09%         -0.77%      +1.0788     +1.0760
 Euro/Sterling    EURGBP=     0.9250         0.9225      +0.27%         +9.42%      +0.9291     +0.9211
 NZ               NZD=        0.6677         0.6649      +0.42%         -0.88%      +0.6694     +0.6644
 Dollar/Norway    NOK=        9.0409         9.0729      -0.35%         +2.99%      +9.0768     +9.0035
 Euro/Norway      EURNOK=     10.7069        10.7200     -0.12%         +8.83%      +10.7279    +10.6684
 Dollar/Sweden    SEK=        8.7748         8.7598      +0.28%         -6.13%      +8.7803     +8.7302
 Euro/Sweden      EURSEK=     10.3904        10.3609     +0.28%         -0.75%      +10.3990    +10.3559
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Olga Cotaga in London)