(Corrects Powell's testimony to start on Wednesday not Tuesday
in 2nd paragraph)
* Traders shift focus to Fed's Powell 2-day testimony
* Markets reprice chance of big Fed cut after jobs data
* Turkey's lira plunges after dismissal of cenbank governor
* Sterling falls toward $1.25, close to six-month low
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Richard Leong
NEW YORK, July 8 (Reuters) - The dollar edged up on Monday,
hovering at a three-week high, as it held on to gains after news
of a stronger-than-expected increase in U.S. jobs in June scaled
back traders' expectations of a sharp Federal Reserve rate cut
at the end of July.
Traders await Fed Chairman Jerome Powell's two-day testimony
before Congress, which starts on Wednesday for clues about a
rate decrease.
"Foreign-exchange markets started the week on a quiet note,
with currencies trading in tight ranges, as traders shifted
their focus from Friday's strong U.S. payrolls data to testimony
from Federal Reserve Chairman Jerome Powell," said Ellis Phifer,
senior market strategist at Raymond James.
Among emerging market currencies, the Turkish lira fell
steeply after President Tayyip Erdogan dismissed the central
bank governor, sparking worries about the bank's independence.
U.S. non-farm payrolls rebounded in June, rising the most in
five months, the Labor Department said on Friday. The solid job gain slashed expectations of a 50 basis point
rate cut at the Fed's July 30-31 policy meeting, although
modest wage gains and other data showing the U.S. economy was
losing steam point to a quarter point rate cut.
At 11:34 a.m. (1534 GMT), the dollar index .DXY was up
0.08% at 97.359, which was close to a 3-week high of 97.443 hit
on Friday.
The greenback's rebound follows a period of weakness as
mounting expectations for Fed rate cuts weighed.
The dollar strengthened 0.18% to 108.67 yen JPY=EBS after
hitting 108.73, which was the highest since June 11.
The euro EUR=EBS was marginally lower at $1.1214 after
hitting $1.1208 EUR=EBS on Friday.
The common currency has been under pressure from dollar
strength and weakness in the German industrial sector.
The British pound, which hit a six-month low below $1.25 on
Friday after poor economic data and on heightened expectations
that the Bank of England will cut interest rates in 2020, fell
0.22% to $1.2508 GBP=D3 .
Turkey's lira at one point slid to a two-week low of 5.8245
to the dollar TRYTOM=D3 and was last down 1.59% at 5.724.
"Some naive market participants might still hope that the
new central bank governor will come across as being independent
in a statement announced for this week and at least does not cut
interest rates right away," Commerzbank analysts said.
"That may be the case but does not change the fact that
medium term sensible Turkish monetary policy will not be
possible."
In a written statement on Saturday, new governor Murat Uysal
said he would implement monetary policy instruments
independently with a focus on achieving and maintaining the
primary objective of price stability. Currency bid prices at 11:35 AM (1535 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1212 $1.1224 -0.11% -2.24% +1.1234 +1.1211
Dollar/Yen JPY= 108.6500 108.4500 +0.18% -1.46% +108.7200 +108.2900
Euro/Yen EURJPY= 121.83 121.75 +0.07% -3.48% +121.9200 +121.5200
Dollar/Swiss CHF= 0.9934 0.9915 +0.19% +1.22% +0.9946 +0.9900
Sterling/Dollar GBP= 1.2509 1.2523 -0.11% -1.94% +1.2539 +1.2501
Dollar/Canadian CAD= 1.3085 1.3075 +0.08% -4.05% +1.3099 +1.3049
Australian/Doll AUD= 0.6969 0.6979 -0.14% -1.16% +0.6994 +0.6969
ar
Euro/Swiss EURCHF= 1.1140 1.1134 +0.05% -1.01% +1.1152 +1.1114
Euro/Sterling EURGBP= 0.8964 0.8958 +0.07% -0.22% +0.8973 +0.8955
NZ NZD= 0.6624 0.6627 -0.05% -1.38% +0.6652 +0.6624
Dollar/Dollar
Dollar/Norway NOK= 8.6370 8.6177 +0.22% -0.02% +8.6450 +8.6007
Euro/Norway EURNOK= 9.6872 9.6732 +0.14% -2.21% +9.6906 +9.6603
Dollar/Sweden SEK= 9.4579 9.4412 +0.00% +5.51% +9.4648 +9.4222
Euro/Sweden EURSEK= 10.6075 10.6077 +0.00% +3.35% +10.6146 +10.5830
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GRAPHIC-Bets on bold first rate-cut from the Fed https://tmsnrt.rs/2XTkkpn
GRAPHIC-Bets on bold first rate-cut from the Fed interactive
https://tmsnrt.rs/2Y3UHTf
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