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Dollar steady before Fed meeting, G20 summit

Credit: REUTERS/THOMAS WHITE

The U.S. dollar was little changed against the euro on Thursday as investors were reluctant to take large positions before next week’s Federal Reserve meeting and the G20 summit in Japan later this month.

By Karen Brettell

NEW YORK, June 13 (Reuters) - The U.S. dollar was little changed against the euro on Thursday as investors were reluctant to take large positions before next week’s Federal Reserve meeting and the G20 summit in Japan later this month.

Tepid inflation and weakening economic data in the midst of a U.S.-China trade war has fed expectations that the Federal Reserve is close to cutting interest rates.

That has brought the U.S. dollar down from two-year highs reached in May, yet investors are reluctant to get too bearish on the greenback without further confirmation that rate cuts are near.

“I think in order to see the dollar weaken further you need to see some follow through from the Fed on rate easing,” said Mazen Issa, senior fx strategist at TD Securities in New York.

The Fed is not widely expected to cut rates when it meets on June 18-19, though investors will watch for new signals that a cut may come in July.

Interest rate futures traders are pricing in a 21% chance of a cut in June, and an 85% likelihood of at least one cut in July.

The other major catalyst for the dollar in the near term is whether the United States and China will renew trade negotiations at the G20 summit on June 28-29.

With international economic growth slowing, investors are also nervous that U.S. President Donald Trump is now considering tariffs on Japan and Europe.

International Monetary Fund Managing Director Christine Lagarde warned that escalating trade tension pose risks that the eurozone could slip into a prolonged period of low growth.

The Australian dollar dropped on Thursday after a mixed set of local jobs data were taken as a green light for a rate cut as soon as July.

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Currency bid prices at 9:42AM (1342 GMT)

Description

RIC

Last

U.S. Close Previous Session

Pct Change

YTD Pct Change

High Bid

Low Bid

Euro/Dollar

EUR=

$1.1274

$1.1287

-0.12%

-1.70%

+1.1303

+1.1274

Dollar/Yen

JPY=

108.4500

108.4900

-0.04%

-1.64%

+108.5300

+108.1700

Euro/Yen

EURJPY=

122.29

122.45

-0.13%

-3.11%

+122.5500

+122.1800

Dollar/Swiss

CHF=

0.9934

0.9954

-0.20%

+1.22%

+0.9960

+0.9919

Sterling/Dollar

GBP=

1.2683

1.2686

-0.02%

-0.58%

+1.2707

+1.2663

Dollar/Canadian

CAD=

1.3319

1.3341

-0.16%

-2.31%

+1.3343

+1.3300

Australian/Dollar

AUD=

0.6912

0.6928

-0.23%

-1.94%

+0.6937

+0.6902

Euro/Swiss

EURCHF=

1.1204

1.1237

-0.29%

-0.44%

+1.1249

+1.1201

Euro/Sterling

EURGBP=

0.8887

0.8894

-0.08%

-1.07%

+0.8920

+0.8883

NZ Dollar/Dollar

NZD=

0.6560

0.6572

-0.18%

-2.34%

+0.6587

+0.6557

Dollar/Norway

NOK=

8.6611

8.6558

+0.06%

+0.26%

+8.6695

+8.6441

Euro/Norway

EURNOK=

9.7665

9.7725

-0.06%

-1.41%

+9.7907

+9.7646

Dollar/Sweden

SEK=

9.4866

9.4735

+0.03%

+5.83%

+9.4898

+9.4644

Euro/Sweden

EURSEK=

10.6970

10.6940

+0.03%

+4.21%

+10.7094

+10.6889

(Editing by David Gregorio)

((Karen.Brettell@thomsonreuters.com; +1 646 223 6274; Reuters Messaging: karen.brettell.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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