* Weak ZEW investor reading put pressure on euro
* Sterling falls below $1.24 for the first time since April
2017
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Updates market action, changes dateline, previous LONDON)
By Richard Leong
NEW YORK, July 16 (Reuters) - The dollar rose against a
basket of currencies on Tuesday as surprisingly strong growth in
U.S. retail sales in June soothed jitters about the American
economy and trimmed expectations the Federal Reserve may embark
on a deep interest rate cut later this month.
The greenback strengthened versus the euro due to data that
pointed to a deterioration in confidence among German investors
prompted by the trade conflict between China and the United
States and political tensions with Iran. The British pound fell to six-month lows against the euro
and a 27-month trough versus the dollar as Conservative Party
members Boris Johnson and Jeremy Hunt, vying to be Britain's
next prime minister, were seen to be toughening their line on
Brexit negotiations. Investors are worried about the rising risk
of a no-deal exit from the European Union.
"An improved U.S. economic outlook should provide some fuel
for further dollar gains," said Win Thin, global head of
currency strategy at Brown Brothers Harriman & Co.
At 10:44 a.m. (1444 GMT), an index that tracks the dollar
against a group of six currencies .DXY was up 0.39% at 97.312
after touching 97.361, the highest in four sessions.
Recent U.S. economic data have on balance beat expectations.
Concerns about the drag from global trade disputes and sluggish
inflation among developed economies, however, have led
policymakers to consider cutting interest rates and/or embarking
on bond purchases to boost investor confidence and business
activities.
The U.S. Commerce Department said retail sales rose 0.4% in
June, exceeding the 0.1% increase forecast among analysts polled
by Reuters. Last week, Fed Chairman Jerome Powell hinted in testimonies
before Congress that the central bank was ready to "act as
appropriate" to support the current U.S. expansion, which is the
longest on record. U.S. interest rate futures FFN9 FFQ9 implied traders
fully expect the Fed to lower key lending rates by at least a
quarter point at its July 30-31 policy meeting, according to CME
Group's FedWatch program.
Traders also expect the European Central Bank to move policy
rates deeper into negative later this year as the euro zone
economy has been struggling.
Earlier Tuesday, the ZEW Institute said its monthly survey
showed economic sentiment among German investors fell to -24.5
in July from -21.1 the month before. The euro was down 0.38% at $1.1215 and 0.09% lower at 121.35
yen.
The single currency, however, was up 0.54% at 90.43 pence
EURGBP=D3 after touching a six-month peak at 90.43 earlier
Tuesday.
Sterling GBP=D3 fell below $1.24 for the first time since
April 2017. It was 0.91% lower at $1.2403.
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Currency bid prices at 10:46AM (1446 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1216 $1.1257 -0.36% -2.21% +1.1263 +1.1208
Dollar/Yen JPY= 108.1700 107.9000 +0.25% -1.90% +108.2600 +107.8300
Euro/Yen EURJPY= 121.34 121.47 -0.11% -3.87% +121.6800 +121.1000
Dollar/Swiss CHF= 0.9873 0.9845 +0.28% +0.60% +0.9886 +0.9837
Sterling/Dollar GBP= 1.2405 1.2514 -0.89% -2.76% +1.2520 +1.2399
Dollar/Canadian CAD= 1.3028 1.3047 -0.15% -4.47% +1.3064 +1.3028
Australian/Doll AUD= 0.7028 0.7039 -0.16% -0.30% +0.7044 +0.7024
ar
Euro/Swiss EURCHF= 1.1073 1.1082 -0.08% -1.61% +1.1094 +1.1058
Euro/Sterling EURGBP= 0.9039 0.8993 +0.51% +0.61% +0.9042 +0.8994
NZ NZD= 0.6706 0.6716 -0.15% -0.16% +0.6737 +0.6708
Dollar/Dollar
Dollar/Norway NOK= 8.5457 8.5407 +0.06% -1.08% +8.5684 +8.5367
Euro/Norway EURNOK= 9.5859 9.6150 -0.30% -3.23% +9.6310 +9.5886
Dollar/Sweden SEK= 9.3758 9.3533 -0.16% +4.60% +9.4026 +9.3481
Euro/Sweden EURSEK= 10.5175 10.5340 -0.16% +2.47% +10.5464 +10.5198
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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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