April 10, 2019 / 3:26 PM / 5 months ago

FOREX-Euro slips as Draghi highlights risks, U.S. CPI helps dollar

    * ECB's Draghi points to weak regional data, risks from
trade
    * U.S. CPI posts biggest increase in 14 months
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Updates market action, changes byline, dateline, previous
LONDON)
    By Richard Leong
    NEW YORK, April 10 (Reuters) - The euro fell on Wednesday as
European Central Bank President Mario Draghi underscored the
risks facing the euro zone economy, reinforcing bets on possible
further stimulus to prevent the region from slipping into
recession.
    The dollar enjoyed a respite from recent selling as
government data showed the biggest one-month jump in U.S.
consumer prices in 14 months in March.
    "The essence of Draghi's message is 'We are willing to look
at all options, but we are not there yet'," said Boris
Schlossberg, managing director of BK Asset Management in New
York.
    "Incoming data continue to be weak, especially for the
manufacturing sector ... The slower growth momentum is expected
to extend into the current year," Draghi said at a press
conference after a meeting where policy-makers left their easy
policy unchanged.
    He also cited the risks from trade disputes to regional
business activity after U.S. President Donald Trump threatened
to impose tariffs on $11 billion worth of European Union goods.
    At 11:06 a.m. (1506 GMT), the euro was 0.08% lower at
$1.1253 and was down 0.27% at 124.855 yen.
    The greenback, which was mainly lifted by the pullback in
the euro, was also bolstered by the latest reading of the U.S.
consumer price index.
    The U.S. government's broadest inflation gauge rose 0.4% in
March, the biggest monthly increase since January 2018, while
the CPI core rate, which excludes volatile food and energy
prices, edged up 0.1%, falling short of the 0.2% gain forecast
by analysts polled by Reuters.
    The somewhat mixed CPI report soothed worries about price
growth fading, but did not dispel the view the Federal Reserve
may lower key U.S. interest rates by early 2020, analysts said.
    An index that tracks the greenback against a basket of
currency was up 0.04% at 97.043. 
 ========================================================
    Currency bid prices at 11:05AM (1505 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1252        $1.1261     -0.08%         +0.00%      +1.1286     +1.1230
 Dollar/Yen       JPY=        110.9400       111.1200    -0.16%         +0.00%      +111.2700   +110.9300
 Euro/Yen         EURJPY=     124.83         125.15      -0.26%         +0.00%      +125.4400   +124.7900
 Dollar/Swiss     CHF=        1.0023         0.9997      +0.26%         +0.00%      +1.0033     +0.9993
 Sterling/Dollar  GBP=        1.3084         1.3060      +0.18%         +0.00%      +1.3104     +1.3045
 Dollar/Canadian  CAD=        1.3326         1.3328      -0.02%         +0.00%      +1.3362     +1.3318
 Australian/Doll  AUD=        0.7143         0.7122      +0.29%         +0.00%      +0.7157     +0.7110
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1277         1.1262      +0.13%         +0.00%      +1.1284     +1.1255
 Euro/Sterling    EURGBP=     0.8600         0.8626      -0.30%         +0.00%      +0.8638     +0.8592
 NZ               NZD=        0.6745         0.6743      +0.03%         +0.00%      +0.6763     +0.6739
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.5132         8.5572      -0.51%         +0.00%      +8.5680     +8.5000
 Euro/Norway      EURNOK=     9.5783         9.6350      -0.59%         +0.00%      +9.6482     +9.5770
 Dollar/Sweden    SEK=        9.2793         9.2576      +0.16%         +0.00%      +9.2923     +9.2342
 Euro/Sweden      EURSEK=     10.4429        10.4260     +0.16%         +0.00%      +10.4483    +10.4060
   

    
 (Reporting by Richard Leong in New York
Additional reporting by Saikat Chatterjee in LONDON and Daniel
Leussink in TOKYO
Editing by Catherine Evans and James Dalgleish)
  
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