FOREX-Euro pinned at more than two-year lows; sterling drops

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Saikat Chatterjee
LONDON, Sept 27 (Reuters) - The euro held at its lowest
level in more than two years on Friday as quarter-end
rebalancing flows boosted demand for the dollar, with investors
unfazed by the latest political news out of the United States.
The euro EUR=EBS fell 0.1% lower to $1.0904, its lowest
level since May 2017. Against a basket of its rivals .DXY , the
greenback pushed 0.1% higher to 99.27, its highest level in more
than three weeks.
"Some corporate demand in the last few days seems to be
boosting the dollar but our models show there should be net
selling later in the day due to rebalancing flows," said Manuel
Oliveri, a currency strategist at Credit Agricole in London.
Sterling GBP=D3 was the other big loser in early London
trading after Bank of England policymaker Michael Saunders
hinted at looser monetary policy if Brexit uncertainty remained
prolonged against a backdrop of disappointing global growth.
The pound weakened 0.3% to a new two-week low of $1.2285 on
Friday as his comments raised expectations that the next move
from the central bank could be a rate cut. Markets are also digesting the impeachment probe launched
into U.S. President Donald Trump and the latest headlines from
the trade dispute between the United States and China.
A whistleblower report released on Thursday said Trump not
only abused his office in attempting to solicit Ukraine's
interference in the 2020 U.S. election, but the White House
tried to "lock down" evidence about it. China's top diplomat said Beijing was willing to buy more
U.S. products. CNBC reported that trade war talks were on track
and scheduled for Oct. 10-11 in Washington, citing people
familiar with the arrangements.
Elsewhere, the dollar eased against the trade-sensitive
Australian AUD=D3 and New Zealand dollars NZD=D3 , which
gently rallied on hopes that next month's U.S.-China trade talks
will bring progress. Moves were slight, though and neither
strayed far from two-week troughs against the greenback.
"A one word description of currency markets trading today:
moribund," said markets strategist Michael McCarthy of brokerage
CMC Markets in Sydney.