* Little impetus in market overnight as summer lull sets in
* NZ dollar touches three-year highs, approaches post-float
* Fed minutes and ECB's Draghi on menu for U.S. session
By Patrick Graham
LONDON, July 9 The euro traded marginally
stronger on Wednesday, with traders looking to a speech by
European Central Bank chief Mario Draghi and the minutes of the
U.S. Federal Reserve's latest meeting for direction later in the
The single currency may have been helped by a relatively
downbeat assessment of the pace of U.S. growth from two Federal
Reserve officials overnight.
Markets are still waiting for more strongly hawkish signals
from the Fed in favour of higher interest rates next year that
many expect eventually to drive U.S. bond yields higher and the
dollar with them.
"Its really been very quiet," said Daragh Maher, a
strategist with HSBC on Monday. "With the minutes today (Fed
chair) Janet Yellen was reasonably dismissive after the meeting
of any upside threat in inflation, so it will be interesting to
see if that mood is the same with others at the Fed."
Against a basket of major currencies, the greenback traded
marginally lower at 80.152. It was 0.04 percent lower
against the euro at $1.3617.
Against the yen, the dollar has fallen all the way back to
levels seen before a strong jobs report last Thursday, hurt by a
retreat in U.S. Treasury yields from last week's highs. It held
steady at 101.63 yen on Wednesday.
"I think the contents of the minutes might turn out to be
dollar-positive," said Masafumi Yamamoto, market strategist for
Praevidentia Strategy in Tokyo.
"Whichever data you look at, the inflation rate (in the
United States) has been rising and I'm not sure that can be
dismissed as just noise."
The New Zealand dollar inched up to a three-year high of
$0.8819, adding another quarter of a percent after a surge on
Tuesday triggered by an improvement in the outlook on one of its
sovereign credit ratings.
The kiwi has gained around 9 percent since January on the
back of a steady rise in domestic interest rates; it is the only
developed world economy in which borrowing costs are rising.
"There's reasonable momentum in the kiwi," said HSBC's
Maher. "I quite like it against the Australian dollar - the
question there is does it have the strength to break through 105
(cents). It may do."
(Additional reporting by Ian Chua and Masayuki Kitano, editing
by John Stonestreet)