July 26, 2018 / 3:25 PM / 19 days ago

RPT-FOREX-Euro slumps as ECB stands pat on easy policy stance

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    * ECB not budging on timeline on normalizing monetary policy
    * ECB's Draghi raises concerns about trade on euro zone
growth
    * Chinese yuan weakens, reverses Wednesday's bounce 
    * Graphic: World FX rates in 2018 tmsnrt.rs/2egbfVh

    By Richard Leong
    NEW YORK, July 26 (Reuters) - The euro fell on Thursday as
the European Central Bank clung to its easy monetary policy and
signaled no change in its timetable to move away from its ultra
low rate policy and to end its asset bond purchase program.
    ECB President Mario Draghi said at a press conference
following the ECB's policy decision while confident about
regional inflation achieving ECB's 2-percent goal, rising
tariffs and other trade barriers would hurt the growth of the
19-member economic bloc.
    "You saw Draghi definitely taking a dovish approach," said
Chuck Tomes, senior investment analyst at Manulife Asset
Management in Boston. "He's focused on the current environment
where he's concerned about trade."
    Draghi's reticence persisted in the aftermath of a meeting
between U.S. President Donald Trump and European Commission
chief Jean-Claude Juncker on Wednesday.
    Trump agreed to refrain from slapping tariffs on
European-made cars, while the two sides started discussions on
reducing other trade barriers in a bid to avert a transatlantic
trade war.
    Still doubts remain on what would transpire from the talks,
analysts said.
    At 10:52 a.m. (1452 GMT), the euro was down 0.6 percent at
$1.16580 and 0.46 percent lower at 129.525 yen
, EBS data showed.
    In addition to the euro, the greenback strengthened against
other major currencies.
    The U.S. economy has continued to exhibited solid growth
despite trade tensions with other countries.
    Domestic core capital goods orders rose 0.6 percent in June,
beating a forecast of a 0.4 percent increase among analysts
polled by Reuters.
    An index that tracks the dollar versus six major currencies
 was up 0.3 percent at 94.640, rebounding from a two-week
low reached earlier Thursday.
    Meanwhile, another drop by the Chinese currency after
Wednesday's bounce undermined broader risk appetite in markets.
    The offshore yuan fell 0.8 percent at 6.8082 to the
dollar, wiping out all of Wednesday's gain.
    A more than six percent drop in the value of the Chinese
currency since mid-June as trade tensions escalated has put
pressure on export-oriented emerging markets.
    Investors increased bearish positions over the past two
weeks on all emerging Asian currencies, according to a Reuters
poll.    
========================================================
    Currency bid prices at 10:53AM (1453 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1656        $1.1728     -0.61%         -2.83%      +1.1743     +1.1652
 Dollar/Yen       JPY=        111.0800       110.9700    +0.10%         -1.41%      +111.1800   +110.5900
 Euro/Yen         EURJPY=     129.50         130.14      -0.49%         -4.20%      +130.2700   +129.5000
 Dollar/Swiss     CHF=        0.9931         0.9917      +0.14%         +1.93%      +0.9940     +0.9904
 Sterling/Dollar  GBP=        1.3140         1.3187      -0.36%         -2.75%      +1.3213     +1.3125
 Dollar/Canadian  CAD=        1.3075         1.3044      +0.24%         +3.96%      +1.3092     +1.3025
 Australian/Doll  AUD=        0.7386         0.7453      -0.90%         -5.32%      +0.7463     +0.7377
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1576         1.1632      -0.48%         -0.97%      +1.1638     +1.1576
 Euro/Sterling    EURGBP=     0.8869         0.8890      -0.24%         -0.16%      +0.8896     +0.8871
 NZ Dollar/Dolar  NZD=        0.6788         0.6835      -0.69%         -4.21%      +0.6850     +0.6788
 Dollar/Norway    NOK=        8.1757         8.1346      +0.51%         -0.38%      +8.1805     +8.1251
 Euro/Norway      EURNOK=     9.5317         9.5409      -0.10%         -3.22%      +9.5545     +9.5304
 Dollar/Sweden    SEK=        8.8019         8.7554      -0.10%         +7.32%      +8.8078     +8.7402
 Euro/Sweden      EURSEK=     10.2600        10.2702     -0.10%         +4.28%      +10.2825    +10.2520
    

    
 (Additional reporting by Saikat Chatterjee in LONDON; 
Editing by Marguerita Choy)
  
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