FOREX-Dollar gains as report of dovish ECB members dents euro

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(Updates prices)

By Karen Brettell

NEW YORK, April 16 (Reuters) - The euro fell against thedollar on Tuesday after reports that some European Central Bankpolicymakers think the bank's economic projections are toooptimistic.

The "significant minority" of rate-setters in last week'spolicy meeting expressed doubt that a long projected growthrecovery is coming in the second half of the year and some evenquestioned the accuracy of the ECB's projection models, giventheir long history of downward revisions, the sources said.

"It's yet another dovish take," said Win Thin, global headof currency strategy at Brown Brothers Harriman in New York. "Ithink they are pushing back against the euro strengthening. It'sone of the few levers they have left."

The release of Purchasing Managers Indexes (PMIs) for themanufacturing and service sectors in Europe on Thursday will beclosely watched as traders look for signals of improving growthin the region.

The Australian dollar was little changed on the day afterearlier weakening after the Reserve Bank of Australia said thata cut in interest rates would be "appropriate" should inflationstay low and unemployment trend higher.

Sterling also slipped after the Guardian newspaper reportedthat talks between Prime Minister Theresa May and the oppositionLabour Party regarding Britain's exit from the European Unionhad stalled. The Labour Party denied the report.

Traders are also waiting for Chinese gross domestic productdata on Wednesday, which may indicate the worst is over for theglobal economy.

Chinese exports and credit data last week signaled somestabilization in economic conditions.


Currency bid prices at 2:28PM (1828 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session Euro/Dollar EUR= $1.1284$1.1307 -0.20% -1.61% +1.1314 +1.1280 Dollar/Yen JPY= 111.9900 112.0300 -0.04% +1.57% +112.0500 +111.8600 Euro/Yen EURJPY= 126.39 126.65 -0.21% +0.13% +126.6800 +126.2100 Dollar/Swiss CHF= 1.0076 1.0038 +0.38% +2.67% +1.0081 +1.0033 Sterling/Dollar GBP= 1.3052 1.3097 -0.34% +2.31% +1.3111 +1.3044 Dollar/Canadian CAD= 1.3357 1.3362 -0.04% -2.05% +1.3402 +1.3346 Australian/Doll AUD= 0.7172 0.7173 -0.01% +1.74% +0.7179 +0.7140 ar Euro/Swiss EURCHF= 1.1371 1.1349 +0.19% +1.04% +1.1377 +1.1344 Euro/Sterling EURGBP= 0.8644 0.8631 +0.15% -3.78% +0.8660 +0.8620 NZ NZD= 0.6756 0.6761 -0.07% +0.58% +0.6769 +0.6742 Dollar/Dollar Dollar/Norway NOK= 8.4823 8.4948 -0.15% -1.81% +8.5068 +8.4733 Euro/Norway EURNOK= 9.5768 9.6020 -0.26% -3.32% +9.6127 +9.5739 Dollar/Sweden SEK= 9.2481 9.2668 -0.36% +3.17% +9.2797 +9.2435 Euro/Sweden EURSEK= 10.4383 10.4760 -0.36% +1.70% +10.4835 +10.4331

(Additional reporting by Tom Finn in LondonEditing by Chizu Nomiyama) ((Karen.Brettell@thomsonreuters.com; +1 646 223 6274; ReutersMessaging: 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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