May 2, 2019 / 2:26 PM / 24 days ago

FOREX-Dollar rises as traders trim U.S. rate-cut view

    * Dollar adds modest gains after FOMC, before U.S. payrolls
    * Euro supported by in-line factory data across the euro
zone
    * Sterling dips as BOE holds rates, cites risk from Brexit
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Updates market action, changes dateline; previous LONDON)
    By Richard Leong
    NEW YORK, May 2 (Reuters) - The dollar gained against most
currencies on Thursday as traders pared their bets of an
interest rate cut from the Federal Reserve following Fed
Chairman Jerome Powell's comment about U.S. inflation.
    The pound slipped after the Bank of England lifted its
growth forecasts but warned that Brexit continued to cloud the
outlook for monetary policy.
    Trading volume picked up as some European markets reopened
after closing for May Day on Wednesday. Chinese and Japanese
markets will remain closed for domestic holidays the rest of the
week.
    The greenback proved resilient since Powell said at a news
conference on Wednesday that the factors dragging on inflation
might be "transitory" and he saw no case for a rate move in
either direction.
    "That took some of the air out of the rate-cut talk," said
Minh Trang, senior currency trader at Silicon Valley Bank in
Santa Clara, California. "Still the market is biased toward a
rate cut as the Fed's next move."
    Interest rate futures implied traders see about a 53% chance
the Fed would lower key lending rates at year-end, down from 61%
late on Wednesday, according to CME Group's FedWatch program.

    At 10:04 a.m. (1404 GMT), an index that tracks the greenback
against the euro, yen, sterling and three other currencies
 was up 0.174% at 97.784.
    The greenback erased initial losses against the euro, which
rose earlier after German retail sales contracted by less than
expected while PMI surveys from Germany to Spain were broadly
within expectations.
    The single currency was 0.12% lower at $1.1182 and
little changed at 124.74 yen.
    Meanwhile, sterling retreated from a two-week high against
the dollar as the BOE's decision to leave rates unchanged at
0.75% reinforced the view that UK policymakers are in no hurry
to raise rates amid concerns about ongoing Brexit negotiations.
    The pound was down 0.16% at $1.3027, while the euro
 was up 0.09% at 85.83 pence.
========================================================
    Currency bid prices at 10:16AM (1416 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1180        $1.1194     -0.13%         -2.52%      +1.1219     +1.1176
 Dollar/Yen       JPY=        111.5400       111.3700    +0.15%         +1.16%      +111.6600   +111.3600
 Euro/Yen         EURJPY=     124.73         124.74      -0.01%         -1.18%      +125.1100   +124.6900
 Dollar/Swiss     CHF=        1.0196         1.0179      +0.17%         +3.89%      +1.0203     +1.0171
 Sterling/Dollar  GBP=        1.3024         1.3049      -0.19%         +2.09%      +1.3081     +1.3025
 Dollar/Canadian  CAD=        1.3456         1.3441      +0.11%         -1.33%      +1.3467     +1.3430
 Australian/Doll  AUD=        0.7008         0.7013      -0.07%         -0.58%      +0.7029     +0.7001
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1401         1.1395      +0.05%         +1.31%      +1.1427     +1.1394
 Euro/Sterling    EURGBP=     0.8581         0.8577      +0.05%         -4.49%      +0.8598     +0.8568
 NZ               NZD=        0.6616         0.6621      -0.08%         -1.50%      +0.6639     +0.6612
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.7460         8.6716      +0.86%         +1.25%      +8.7509     +8.6608
 Euro/Norway      EURNOK=     9.7797         9.7093      +0.73%         -1.28%      +9.7860     +9.7080
 Dollar/Sweden    SEK=        9.5548         9.5407      +0.00%         +6.59%      +9.5627     +9.5136
 Euro/Sweden      EURSEK=     10.6826        10.6824     +0.00%         +4.08%      +10.7042    +10.6660
    

 (Additional reporting by Saikat Chatterjee in LONDON;
Editing by Raissa Kasolowsky and Dan Grebler)
  
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