FOREX-Dollar treads water as traders stare at event risk

* Markets wait for Fed, ECB meetings, trade deadline
* HK dlr hits highest since July as carry trades unwind
* Sterling rises after latest UK election poll
* Swedish crown surges on inflation surprise

(Recasts throughout, updates rates, adds comments post-U.S.
market open; new byline, changes dateline; previous LONDON)
By Saqib Iqbal Ahmed
NEW YORK, Dec 11 (Reuters) - The U.S. dollar treaded water
against a basket of major currencies on Wednesday, as FX markets
braced for a host of events, including central bank meetings in
the United States and Europe, the UK general election and a key
deadline for U.S.-China trade talks.
The dollar index .DXY , which measures the greenback
against six other major currencies, was up 0.02% at 97.433.
The U.S. Federal Reserve, which has lowered borrowing costs
three times this year in response to the global trade war, is
expected to leave policy unchanged when it concludes its last
policy meeting of the year later on Wednesday.
"The Fed is poised to hold rates steady but the combination
of the statement, forecast update and Powell's press conference
may put a dovish spin on the outlook, whilst stressing that
rates and the economy are in a good spot," Shaun Osborne, chief
FX strategist at Scotiabank in Toronto, said in a note.
Data on Wednesday, showed U.S. consumer prices increased
solidly in November, which together with labor market strength
could support the Federal Reserve's intention not to cut
interest rates again in the near term. The euro was about flat on the day against the greenback
ahead of new European Central Bank boss Christine Lagarde's
first policy meeting on Thursday, where investors will
scrutinize her every word for a sense of the direction she the
bank will take under her leadership. Traders are also watching for news on the U.S. China trade
talks. U.S. President Donald Trump has until Dec. 15 to decide
whether to impose tariffs on nearly $160 billion in Chinese
consumer goods just weeks before Christmas, a move that could be
unwelcome in both the United States and China. Elsewhere, Sweden's crown jumped to a more than 4-month high
against the dollar after strong inflation data made it highly
likely the country would end negative interest rates. The dollar
was 0.58% lower against the Swedish crown. In another notable move, the Hong Kong dollar rallied to its
strongest level since July 24, which analysts attributed to the
unwinding of bets previously profiting from "carry trades" -
borrowing with low interest rates in Hong Kong to purchase U.S.
dollar assets. The greenback was 0.16% lower against the Hong Kong dollar.
HKD= . Hong Kong's currency is pegged to the greenback at a
tight range of 7.75-7.85 per dollar and the city's monetary
policy moves lock-step with the United States.
The pound inched higher in very thin trading, shrugging off
a key opinion poll for Britain's general election that showed
the ruling Conservative Party might still fail to win a
majority. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
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