April 2, 2019 / 2:24 PM / 4 months ago

FOREX-Euro weakest in over three weeks against dollar

    * Dollar gains against euro as data mixed
    * U.S. durable goods orders fell in February 
    * Fed on hold may encourage investment in emerging markets

 (New throughout, updates prices, market activity and comments
to U.S. market open, new byline, changes dateline, previous
    By Karen Brettell
    NEW YORK, April 2 (Reuters) - The U.S. dollar was modestly
stronger against the euro on Tuesday, after earlier gaining to a
3-1/2-week high, as investors evaluated international growth
prospects with the U.S. and European central banks unlikely to
raise interest rates soon.
    Survey data on Monday showed factories in the euro zone had
their worst month in almost six years in March, while economic
data in the United States offered more
    Data on Tuesday, however, showed that new orders for key
U.S.-made capital goods unexpectedly fell in February and
shipments were unchanged, while data for January was revised
slightly higher.
    “The theme is really is good U.S. data good or bad for the
dollar?” said Mark McCormick, North American head of FX strategy
at TD Securities in Toronto, adding that it may in fact be
negative with the Federal Reserve on hold regarding rates.
    That is because a solid U.S. economy should help the view
that the global economy will stabilize, and encourage investors
searching out yield to move into emerging markets for higher
returns, he said.
    Outflows from European equity exchange-traded funds have
also diminished, which suggests an improving outlook for the
region, McCormick said. Like the Fed, the ECB is not expected to
raise rates in the near term.
    The single currency was last $1.1201 against the dollar
, after earlier dipping to $1.1188, the lowest since March
8. The euro is nearing the $1.1174 level, which if broken would
send the currency to its weakest levels since June 2017.
    Some technical indicators suggest the euro may be nearing
the end of its downturn, and that it should find support soon if
it does not drop below the $1.1185-$1.1175 region. 
    The euro is trying to find a bottom, "but (it) needs to do
more work,” Karen Jones, a technical analyst at Commerzbank
wrote on Tuesday in a report.
    Australia's dollar shed more than 0.53% after the
Australian government downgraded its growth forecasts but said
it expected the economy to extend its enviable recession-free
run of growth into a third decade.
    Sterling dropped 0.40% after lawmakers rejected four
Brexit proposals, heightening Britain's uncertainty just 10 days
before it is due to leave the European Union.
    Currency bid prices at 9:39AM (1339 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1201        $1.1212     -0.10%         +0.00%      +1.1218     +1.1191
 Dollar/Yen       JPY=        111.3000       111.3400    -0.04%         +0.00%      +111.4500   +111.2900
 Euro/Yen         EURJPY=     124.70         124.84      -0.11%         +0.00%      +124.9000   +124.6500
 Dollar/Swiss     CHF=        0.9986         0.9987      -0.01%         +0.00%      +1.0000     +0.9984
 Sterling/Dollar  GBP=        1.3046         1.3099      -0.40%         +0.00%      +1.3100     +1.3015
 Dollar/Canadian  CAD=        1.3330         1.3306      +0.18%         +0.00%      +1.3338     +1.3305
 Australian/Doll  AUD=        0.7073         0.7111      -0.53%         +0.00%      +0.7129     +0.7065
 Euro/Swiss       EURCHF=     1.1190         1.1197      -0.06%         +0.00%      +1.1203     +1.1183
 Euro/Sterling    EURGBP=     0.8586         0.8558      +0.33%         +0.00%      +0.8607     +0.8555
 NZ               NZD=        0.6758         0.6804      -0.68%         +0.00%      +0.6804     +0.6756
 Dollar/Norway    NOK=        8.6099         8.5810      +0.34%         +0.00%      +8.6176     +8.5872
 Euro/Norway      EURNOK=     9.6472         9.6253      +0.23%         +0.00%      +9.6581     +9.6212
 Dollar/Sweden    SEK=        9.3181         9.2810      +0.31%         +0.00%      +9.3241     +9.2840
 Euro/Sweden      EURSEK=     10.4390        10.4068     +0.31%         +0.00%      +10.4510    +10.4039
All spots FX= 
Tokyo spots AFX= 
Europe spots EFX= 
Volatilities FXVOL= 
Tokyo Forex market info from BOJ TKYFX World central bank news
Economic Forecasts... ECON   Official rates...INT/RATE
Forex Diary.......MI/DIARY   Top events........M/DIARY
Diaries...........DIARY Diaries Index........IND/DIARY
Press Digests.....PRESS Polls on G7 economies..SURVEY/
European markets......MARKETS/))

 (Additional reporting by Tommy Wilkes in London; editing by
Jonathan Oatis)
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