(Corrects Powell's testimony to start on Wednesday not Tuesday in paragraph 2)
* Traders shift focus to Fed's Powell two-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 onto 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.
"We do expect a July rate cut," said Alfonso Esparza, senior market analyst at Oanda in
Toronto. "The data have been mixed. They're not terrible. They're not great."
In late U.S. trading, the dollar index .DXY was up 0.07% at 97.357, which was close to a
three-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 108.675 yen JPY=EBS after hitting 108.73, which was the
highest since June 11.
The euro EUR=EBS was marginally lower at $1.1215 after hitting $1.1208 EUR=EBS on
Friday, which was the lowest since Jan. 3.
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
0.15% to $1.2516 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 1.91% at 5.742 after Erdogan dismissed the central bank Governor Murat Cetinkaya.
In a written statement on Saturday, new governor Murat Uysal, Cetinkaya's deputy, said he
would implement monetary policy instruments independently with a focus on achieving and
maintaining the primary objective of price stability. bid prices at 1440 EDT (1840 GMT):
Description RIC Last U.S. Close Pct YTD Pct High Bid Low Bid
Previous Change Change
Session
Euro/Dollar EUR= $1.1214 $1.1224 -0.09% -2.22% +1.1234 +1.1208
Dollar/Yen JPY= 108.6700 108.4500 +0.20% -1.44% +108.7200 +108.2900
Euro/Yen EURJPY= 121.86 121.75 +0.09% -3.45% +121.9300 +121.5200
Dollar/Swiss CHF= 0.9935 0.9915 +0.20% +1.23% +0.9946 +0.9900
Sterling/Dollar GBP= 1.2516 1.2523 -0.06% -1.89% +1.2539 +1.2501
Dollar/Canadian CAD= 1.3086 1.3075 +0.08% -4.04% +1.3099 +1.3049
Australian/Doll AUD= 0.6972 0.6979 -0.10% -1.09% +0.6994 +0.6968
ar
Euro/Swiss EURCHF= 1.1144 1.1134 +0.09% -0.98% +1.1152 +1.1114
Euro/Sterling EURGBP= 0.8959 0.8958 +0.01% -0.28% +0.8973 +0.8955
NZ NZD= 0.6628 0.6627 +0.02% -1.33% +0.6652 +0.6623
Dollar/Dollar
Dollar/Norway NOK= 8.6410 8.6177 +0.27% +0.03% +8.6457 +8.6007
Euro/Norway EURNOK= 9.6909 9.6732 +0.18% -2.17% +9.6930 +9.6603
Dollar/Sweden SEK= 9.4584 9.4412 -0.01% +5.52% +9.4654 +9.4222
Euro/Sweden EURSEK= 10.6068 10.6077 -0.01% +3.34% +10.6150 +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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