FOREX-Dollar mixed ahead of Fed's interest rate decision


Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

    * Traders wait clues from Fed on U.S. rate hike path
    * Euro stuck below $1.18 ahead of Thursday's ECB meeting
    * Sterling gives up gains after Tuesday's Brexit vote boost

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, June 13 (Reuters) - The dollar was weaker against
the euro but rose against some emerging market currencies and
hit a three-week high against the yen on Wednesday as investors
braced for what is expected to be the Federal Reserve's second
interest rate increase of 2018.
    The euro gained ground on the greenback amid expectations
that the European Central Bank on Thursday would signal its
intention to taper its 2.55 trillion euro ($3 trillion) bond
purchasing program later in 2018.
    Some emerging market currencies weakened versus the dollar
on the possibility of a Fed rate hike, while others rose.
Countries like Turkey  TRY=  with large external financing needs
are particularly vulnerable to rising dollar-funding costs.*:nL8N1TF26N
    The U.S. central bank is due to release its latest policy
statement at 2 p.m. EDT (1800 GMT), followed by a press
conference half an hour later by Fed Chairman Jerome Powell.
    The Fed is expected to raise its benchmark overnight lending
rate by a quarter of a percentage point to a range of 1.75
percent to 2.00 percent. Investors will scour the statement for
clues as to whether the Fed will raise rates once or twice more
in the second half of 2018. 
    "If they paint a picture of stronger inflation and growth,
the market would take that as dollar-positive," said Richard
Scalone, co-head of foreign exchange at TJM Brokerage in
    At 10:17 a.m. (1417 GMT), the dollar was flat at 110.39 yen
 JPY=  after earlier hitting a three-week high at 110.71 yen.
    The euro was up 0.25 percent at $1.1770  EUR=  and was 0.36
percent stronger at 129.96 yen  EURJPY= .
    Among emerging market currencies, the Turkish lira  TRY= 
was down 1 percent at 4.646 lira per dollar, while South
Africa's rand  ZAR=  firmed 0.2 percent to 13.300 rand per
    The British pound dipped to a one-week low of $1.3309
 GBP=D3 , unable to hold gains made on Tuesday when it briefly
rose to $1.3424 after British Prime Minister Theresa May saw off
a parliamentary rebellion over amendments to a bill for the
country's exit from the European Union next year.*:nL8N1TD505
    Slower-than-expected British inflation data on Wednesday
also hurt the pound, as it weakened the case for a Bank of
England rate rise in August.*:nL8N1TF1X1*:nL8N1TF1ZA
    The Canadian dollar, which has fallen heavily in recent
weeks on concerns an escalating trade dispute with the United
States would hit Canada's economy hard, rebounded nearly 0.2
percent to C$1.2992  CAD=D4 , above what was nearly a
three-month low of C$1.3068 set last week.
    The Norwegian crown rallied for a second straight session
against the dollar  NOK=  and the euro  EURNOK= , hitting its
strongest level against the single currency since late October
after an upbeat central bank survey raised expectations of
tighter monetary policy.*:nL8N1TF271           
    Currency bid prices at 10:21AM (1421 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1772        $1.1743     +0.25%         -1.87%      +1.1782     +1.1731
 Dollar/Yen       JPY=        110.4100       110.3600    +0.05%         -2.01%      +110.7100   +110.3600
 Euro/Yen         EURJPY=     129.97         129.62      +0.27%         -3.85%      +130.1300   +129.6200
 Dollar/Swiss     CHF=        0.9850         0.9866      -0.16%         +1.10%      +0.9895     +0.9848
 Sterling/Dollar  GBP=        1.3358         1.3370      -0.09%         -1.14%      +1.3376     +1.3310
 Dollar/Canadian  CAD=        1.2985         1.3013      -0.22%         +3.24%      +1.3046     +1.2983
 Australian/Doll  AUD=        0.7584         0.7571      +0.17%         -2.78%      +0.7593     +0.7556
 Euro/Swiss       EURCHF=     1.1599         1.1587      +0.10%         -0.77%      +1.1622     +1.1587
 Euro/Sterling    EURGBP=     0.8811         0.8781      +0.34%         -0.81%      +0.8826     +0.8780
 NZ Dollar/Dolar  NZD=        0.7038         0.7005      +0.47%         -0.68%      +0.7049     +0.6996
 Dollar/Norway    NOK=        8.0210         8.0496      -0.36%         -2.27%      +8.0583     +8.0108
 Euro/Norway      EURNOK=     9.4436         9.4575      -0.15%         -4.11%      +9.4606     +9.4250
 Dollar/Sweden    SEK=        8.6214         8.6427      -0.02%         +5.12%      +8.6538     +8.6018
 Euro/Sweden      EURSEK=     10.1507        10.1526     -0.02%         +3.17%      +10.1582    +10.1220

($1 = 0.8497 euros)

World FX rates in 2018
DXY and CFTC Positions
 (Additional reporting by Tommy Wilkes in LONDON
Shinichi Saoshiro in TOKYO; Editing by Keith Weir and Paul
 ((; +1 646 223 6313; Reuters
Twitter @RichardLeong2))

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.