FOREX

Fx-Dollar hits two-thirty day period substantial just after U.S. growth info – Reuters


    * U.S. GDP rises two.one% in Q2, improved than predicted
    * Facts does not alter Fed expectation for a level minimize up coming week
    * Graphic: Planet Forex prices in 2019 tmsnrt.rs/2egbfVh

 (Recasts, adds remark, Forex table, U.S. GDP info, updates price ranges, alterations byline, dateline former
LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, July 26 (Reuters) - The dollar climbed to two-thirty day period peaks on Friday and was on speed for a
second straight weekly get just after info confirmed the world's most significant economic climate slowed at a a lot less-than-predicted
speed in the second quarter.
    The dollar's rise was also assisted by widening yield differentials involving U.S. and German personal debt.
Spreads have been holding at two-thirty day period highs at 249 foundation points.
    Investors have been let down by a deficiency of coverage action from the European Central Lender at a assembly on
Thursday. Their focus will now shift to a Federal Reserve assembly up coming week, the place policymakers are
predicted to minimize desire prices by a quarter of a percentage issue.
    A improved-than-predicted U.S. gross domestic item report for the second quarter is not possible to
alter the Fed's way of thinking, analysts said.
    Facts confirmed U.S. GDP grew at a two.one% annualized level in the second quarter. The economic climate highly developed at an
unrevised 3.one% speed in the 1st quarter. Economists polled by Reuters experienced forecast GDP growing at just a
one.eight% level in the second quarter.
    "You keep on to see this topic that the U.S. is developing properly, improved than most G7 economies,
steady with dollar strength that we are looking at on the back of this," said Erik Nelson, forex
strategist at Wells Fargo Securities in New York.
    "I will not imagine it alterations all that significantly for the Fed up coming week. We still hope a twenty five foundation-issue minimize at
the assembly," he included.
    In midmorning trading, the dollar index was up .one% at ninety seven.927, just after before hitting its
greatest level due to the fact late May well.
    The greenback was minimal altered versus the yen at 108.sixty six yen.
    Steve Blitz, main U.S. economist at TS Lombard, thinks that with the GDP info, Fed Chairman Jerome
Powell would have a challenging time convincing the hawks on the Federal Open up Sector Committee of the need to have for a
swift fifty foundation-issue minimize.
    "So here is the Fed, confronted with total growth at trend designed by the combination of a slowing
business sector yet still robust usage — a functionality of stable if slower employment growth and a
robust stock market place," Blitz said.
    In other currencies, the euro was down .two% at $one.1127, recovering from a two-thirty day period minimal of
$one.1102 just after the ECB conclusion on Thursday. For the week, the one forex is down .eight%.
    Following the ECB session, President Mario Draghi indicated the bank was organized to minimize prices at its up coming
assembly, in September, and contemplate other possibilities for easing. 
    Sterling, in the meantime, slipped .two% to $one.2425 and was on system for a .6% weekly loss. Cable has
stabilized due to the fact Boris Johnson grew to become Britain's new prime minister, but uncertainty continues to be about the
country's negotiations to go away the European Union.
    
    ========================================================
    Forex bid price ranges at nine:56AM (1356 GMT)
 Description      RIC         Final           U.S. Close  Pct Improve     YTD Pct     Higher Bid    Reduced Bid
                                              Former                   Improve                 
                                              Session                                           
 Euro/Dollar      EUR=        $one.1128        $one.1145     -.fifteen%         -two.ninety seven%      +one.1150     +one.1126
 Dollar/Yen       JPY=        108.6600       108.6200    +.04%         -one.forty five%      +108.8200   +108.5700
 Euro/Yen         EURJPY=     one hundred twenty.93         121.09      -.13%         -four.19%      +121.1900   +one hundred twenty.9200
 Dollar/Swiss     CHF=        .9935         .9906      +.29%         +one.23%      +.9937     +.9901
 Sterling/Dollar  GBP=        one.2406         one.2454      -.39%         -two.75%      +one.2462     +one.2408
 Dollar/Canadian  CAD=        one.3186         one.3161      +.19%         -3.31%      +one.3193     +one.3157
 Australian/Doll  AUD=        .6915         .6950      -.fifty%         -one.ninety%      +.6955     +.6917
 ar                                                                                             
 Euro/Swiss       EURCHF=     one.1059         one.1042      +.fifteen%         -one.seventy three%      +one.1061     +one.1038
 Euro/Sterling    EURGBP=     .8970         .8950      +.22%         -.16%      +.8970     +.8948
 NZ Dollar/Dolar  NZD=        .6633         .6662      -.44%         -one.twenty five%      +.6669     +.6635
 Dollar/Norway    NOK=        eight.7086         eight.6725      +.42%         +.81%      +eight.7162     +eight.6742
 Euro/Norway      EURNOK=     nine.6919         nine.6707      +.22%         -two.16%      +nine.7101     +nine.6683
 Dollar/Sweden    SEK=        nine.4732         nine.4475      +.09%         +five.sixty eight%      +nine.4863     +nine.4453
 Euro/Sweden      EURSEK=     10.5443        10.5343     +.09%         +two.seventy three%      +10.5637    +10.5277
 
 (Reporting by Gertrude Chavez-Dreyfuss Additional reporting by Saikat Chatterjee in London
Editing by Nick Zieminski)
  

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