* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Daniel Leussink
TOKYO, June 14 (Reuters) - The dollar held steady early inAsia on Friday, and was set ot show a weekly rise as investorfocus turned to next week's Federal Reserve meeting for cues ona possible interest rate cut in light of rising risks to tradeand global growth.
The Federal Open Market Committee's (FOMC) two-day policymeeting is set to begin on Tuesday. With trade tensions rising,U.S. growth slowing and hiring in May declining, markets havepriced in at least two rate cuts by the end of 2019.
There was only an 11.3% expectation on Thursday that U.S.interest rates will be at current levels in July of this year,compared to 74.1% a month ago, according to the CME Group'sFedWatch tool.
"Ahead of the FOMC meeting, people are expecting dovishcomments from the Fed, which is weighing on the dollar ingeneral," said Masafumi Yamamoto, chief currency strategist atMizuho Securities.
"However, other currencies like euro and sterling are weakand their weakness is helping the strength of the dollar," hesaid.
Investors' attention on Friday will also be on U.S. retailsales data due later in the day for insights into the state ofdomestic demand in the world's biggest economy.
Against the yen JPY= , the dollar dipped 0.05% to 108.34yen. The yen showed little reaction to the latest round of tradenegotiations between Tokyo and Washington on Thursday.
Japan and the United States deepened their understandingover each other's position on trade and will continuediscussions, Japan's economy minister Toshimitsu Motegi saidafter meeting with U.S. Trade Representative RobertLighthizer. urn:newsml:reuters.com:*:nL4N23K4Q6
Motegi said the two would probably meet again ahead of theG20 summit meeting in Osaka, Japan late this month.
The euro EUR= edged up 0.03% to $1.1280, holding up afterfalling during the past two sessions, though it was still setfor a weekly loss of 0.44%.
Elsewhere, the Australian dollar AUD=D4 was a shade lowerat $0.6913, staying within reach of this month's low of $0.6901touched on Thursday.
Oil futures dipped in early trading on Friday, having risensharply on Thursday following attacks on two tankers near Iranand the Strait of Hormuz, a key passage for seaborne oilcargoes. urn:newsml:reuters.com:*:nL4N23K0OFO/R
Mizuho's Yamamoto said rising oil prices resulting fromgeopolitical tension in the Middle East could create a drag onthe dollar, adding that higher crude prices were not necessarilybad for the global economy.
(Editing by Simon Cameron-Moore) ((email@example.com; Twitter: @danielleussink;+81-3-6441-1825; Reuters Messaging:firstname.lastname@example.org))