FOREX-Markets sleepy, dollar on hold ahead of U.S. GDP data

(New throughout)
By Kate Duguid
NEW YORK, Dec 19 (Reuters) - The dollar was stalled on
Thursday a day ahead of the release of U.S. gross domestic
product data, little moved by weak factory activity data or
President Donald Trump's impeachment.
The dollar has been bolstered by strong economic data
reported earlier this week that decreased expectations the
Federal Reserve will continue its interest-rate-cutting cycle in
2020. Thursday's Philadelphia Fed report that its business
conditions index fell to 0.3 in December from 10.4 in November
also failed to dent the dollar.
The dollar index .DXY was down 0.03% to 97.375 as traders
held off from making major moves before the Commerce Department
on Friday reports the final estimate of third-quarter GDP.
Against the euro EUR= , the dollar was down 0.11% to $1.112.
"It's very sleepy," said Juan Perez, senior foreign exchange
trader and strategist at Tempus Inc. "Markets are quiet in
anticipation of what may come tomorrow when it comes to gross
domestic product."
Wednesday night's vote in the Democratic-controlled House of
Representatives to impeach Trump on charges of abuse of power
and obstruction of Congress did not affect risk appetite because
the majority-Republican Senate is widely expected to acquit the
president. The safe-haven Japanese yen strengthened against the dollar
JPY= , up 0.26% to 109.23 yen.
The dollar was also mostly unmoved by Treasury Secretary
Steven Mnuchin's statement on Thursday that the United States
and China would sign their Phase One trade pact at the beginning
of January. Mnuchin said the pact was completely finished and
just undergoing a technical "scrub." Elsewhere, the Bank of England kept interest rates steady,
saying it was too soon to gauge how much Prime Minister Boris
Johnson's electoral victory would lift the Brexit uncertainty
that has hung over the economy. The pound was 0.51% weaker
against the dollar at $1.301 GBP= , extending its precipitous
drop this week after Johnson rekindled the possibility of a
British exit from the European Union without a trade agreement.
The pound has fallen 3.72% since Johnson's win on Dec. 13.
The Bank of England "didn't seem too dovish but none too
positive either. So, they're in the same mode as the Fed where
they're just watching carefully to see how things politically
are going to work out," said Perez.