* Dollar overvalued; euro, yen, yuan in line - IMF
* Fed's Beige Book on tap as traders expect U.S. rate cut
* Sterling slips to new 27-month low vs dollar
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Updates market action, changes dateline, previous LONDON)
By Richard Leong
NEW YORK, July 17 (Reuters) - The dollar was little changed
against most major currencies on Wednesday, pausing after prior
day's gains tied to stronger-than-forecast retail sales data,
while the pound fell to 27-month lows versus the greenback on
jitters about a no-deal Brexit.
The euro hit a one-week low against the dollar and towards
the lower end of this year's trading range, weighed down by
expectations of easing from the European Central Bank and
investors' preference for the higher-yielding U.S. currency.
"It's been a quiet midweek night of trade in FX with major
holding steady around key levels after selling off against the
dollar yesterday," Boris Schlossberg, managing director of FX
strategy at BK Asset Management wrote in a research note.
The euro EUR=EBS fell to $1.1200 earlier Wednesday before
clawing back up 0.06% to $1.1219.
The dollar JPY=EBS was little changed at 108.19 yen.
The pound GBP=D3 fell to a fresh 27-month low of $1.2382
before rebounding to $1.2429. It also hit a fresh six-month low
against the euro at 90.51 pence EURGBP=D3 . GBP/
An index that tracks the dollar against the euro, yen, pound
and three other currencies .DXY was down 0.08% at 97.315 after
touching a one-week high.
The greenback has strengthened since late June in response
to better-than-expected data on U.S. jobs, inflation and retail
sales. Its rise has been limited by firming signals from Federal
Reserve officials of a possible rate decrease perhaps in two
weeks to counter risk from global trade tensions and sluggish
price growth at home.
U.S. interest rates futures implied traders fully expect the
Fed to cut rates at its upcoming policy meeting on July 30-31
with a 35% chance for a half-point decrease, CME Group's
FedWatch tool showed.
Fed policy-makers will release an assessment of the economy
with its latest Beige Book at 2 p.m. (1800 GMT).
Moreover, the International Monetary Fund on Wednesday said
the greenback was overvalued by 6% to 12%, based on near-term
economic fundamentals, while the euro, Japan's yen and China's
yuan were seen as broadly in line with fundamentals.
Wednesday's data on euro zone consumer price inflation,
which was revised up to 1.3% year-on-year in June, failed to
boost the euro. ECB board member Benoit Coeure said the ECB was ready to act
if necessary to help inflation in the euro zone move towards its
aim of close to but below 2%.
Nearly two ECB interest rate cuts of 10 basis points are
priced in by money markets for 2019.
========================================================
Currency bid prices at 10:23AM (1423 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1217 $1.1209 +0.07% -2.20% +1.1222 +1.1201
Dollar/Yen JPY= 108.1800 108.2200 -0.04% -1.89% +108.3200 +108.1200
Euro/Yen EURJPY= 121.37 121.33 +0.03% -3.84% +121.4800 +121.2100
Dollar/Swiss CHF= 0.9883 0.9877 +0.06% +0.70% +0.9907 +0.9872
Sterling/Dollar GBP= 1.2426 1.2403 +0.19% -2.59% +1.2433 +1.2383
Dollar/Canadian CAD= 1.3066 1.3086 -0.15% -4.19% +1.3093 +1.3052
Australian/Doll AUD= 0.7004 0.7012 -0.11% -0.64% +0.7020 +0.6997
ar
Euro/Swiss EURCHF= 1.1089 1.1074 +0.14% -1.47% +1.1110 +1.1071
Euro/Sterling EURGBP= 0.9026 0.9034 -0.09% +0.47% +0.9051 +0.9025
NZ NZD= 0.6725 0.6700 +0.37% +0.12% +0.6728 +0.6698
Dollar/Dollar
Dollar/Norway NOK= 8.5816 8.5727 +0.10% -0.66% +8.5933 +8.5719
Euro/Norway EURNOK= 9.6271 9.6101 +0.18% -2.82% +9.6334 +9.6107
Dollar/Sweden SEK= 9.3684 9.3884 -0.16% +4.51% +9.4048 +9.3650
Euro/Sweden EURSEK= 10.5100 10.5269 -0.16% +2.40% +10.5367 +10.5080
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GRAPHIC-Trade tensions boost U.S. rate-cut expectations https://tmsnrt.rs/2KdE2by
GRAPHIC-Bets on bold first rate-cut from the Fed interactive
https://tmsnrt.rs/2Y3UHTf
GRAPHIC-Bets on bold first rate-cut from the Fed https://tmsnrt.rs/2XTkkpn
GRAPHIC-Trade tensions boost U.S. rate-cut expectations
interactive https://tmsnrt.rs/2KdDNxa
GRAPHIC-Euro 1-month implied volatility https://tmsnrt.rs/2NYofAO
GRAPHIC-Euro net short positions https://tmsnrt.rs/32uh2f7
GRAPHIC-Bund yield set to fall below ECB deposit rate https://tmsnrt.rs/2YqE2cu
GRAPHIC-Bund yield set to fall below ECB deposit rate
interactive https://tmsnrt.rs/2YtKj7d
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