FOREX-Dollar held back by lower U.S. yields, rebound in pound

* Dollar nudged off 1-week high by slide in U.S. yields
* Soft housing data, U.S.-China trade woes depress yields
* Kiwi hovers near 3-month high
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Shinichi Saoshiro
TOKYO, July 18 (Reuters) - The dollar nursed light losses on
Thursday, weighed down by lower U.S. yields and a rebound in the
pound from 27-month lows.
The dollar index .DXY versus a basket of six major
currencies was flat at 97.200 after shedding 0.2% the previous
day.
The index had climbed to a one-week peak of 97.444 the
previous day on stronger-than-expected U.S. retail sales and a
slump in sterling. But it nudged lower as Treasury yields fell
in the wake of weak U.S. housing market data and concerns about
the unresolved U.S.-China trade conflict.
"The dollar basically handed back earlier gains as Treasury
yields pulled back and on IMF comments, and came back to where
it was a few days ago," said Takuya Kanda, general manager at
Gaitame.Com Research Institute.
Various economic data have given conflicting signs regarding
the state of the U.S. economy, but that does not change the
bigger picture of the dollar facing downward pressure due to an
impending rate cut by the Federal Reserve, Kanda said.
The International Monetary Fund (IMF) on Wednesday said the
greenback was overvalued by 6% to 12%, based on near-term
economic fundamentals. The Fed is widely expected to lower interest rates by 25
basis points (bps) at its July 30-31 policy meeting, with some
in the market wagering on a larger 50 bp cut.
Sterling GBP=D4 was steady at $1.2434. It had stumbled to
$1.2382, its lowest since April 2017 on Wednesday amid growing
risks of Britain leaving the European Union in a no-deal Brexit,
before selling abated.
The euro EUR= was flat at $1.1228 after crawling up 0.1%
on Wednesday. The single currency's gains were modest as it was
restrained by expectations of easing from the European Central
Bank as early as next week.
The dollar was unchanged at 107.945 yen JPY= following an
overnight loss of 0.3%.
The New Zealand dollar NZD=D4 hovered near a three-month
peak of $0.6745 scaled overnight. The kiwi has gained more than
0.5% this week, supported by positive domestic factors such as
strong inflation.
The Australian dollar AUD=D4 was steady at $0.7008 after
ending the previous day little changed. The market's immediate
focus for the Aussie was upcoming Australian employment data at
0130 GMT and the potential impact on central bank monetary
policy.

(Editing by Jacqueline Wong)