* U.S. jobs beat forecast, lessens case for aggressive Fed
cut
* Treasury yields, dollar gain; focus on Powell's testimony
* Pound at 6-mth low; lira slides after c.bank chief removed
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Tomo Uetake
TOKYO, July 8 (Reuters) - The dollar rose broadly on Monday
after strong U.S. jobs growth in June suggested the Federal
Reserve will not aggressively cut interest rates later this
month.
U.S. nonfarm payrolls rebounded in June to 224,000, the most
in five months, data showed on Friday, beating economists'
consensus estimate of 160,000. The solid outcome virtually wipes out chances for a half
point Fed rate cut at the end of July, but moderate wage gains
among other data showing the world's largest economy was losing
steam could still encourage the central bank to cut rates by 25
basis points.
The dollar index .DXY USD= climbed to as high as 97.443
on Friday, its highest level since June 19, as U.S. Treasury
yields rose across the board. The index, which measures the greenback against a basket of
major currencies, was last quoted at 97.277, almost flat in
early Asian trade on Monday, with the euro EUR= traded at
$1.1223.
Against the yen, the dollar advanced to as high as 108.640
JPY=EBS on Friday, its highest since June 18. The pair was
last quoted at 108.51 yen.
"There is no great urgency for the Fed to act, and surely
not by the half a percentage point move," said Marc Chandler,
chief market strategist at Bannockburn Global Forex.
As traders' focus quickly shifted to Federal Reserve
Chairman Jerome Powell's Congressional testimony, due Wednesday
and Thursday this week, Chandler said it might be too late to
persuade the market that the Fed will not cut rates now.
"But Powell can lean against the idea that the Fed will cut
rates 75 bp this year, by emphasising the still robust
expansion, strong financial conditions, and perhaps couching a
cut in terms of 'insurance.'"
The British pound hit a six-month low to the dollar on
Friday, after poor economic data and a rise in expectations that
the Bank of England will cut interest rates.
Better-than-expected U.S. jobs data sparked a rally in the
dollar, adding to sterling's losses.
Sterling plunged to as low as $1.2481, its lowest since the
"flash crash" on January 3 when the pound dropped to $1.2409. It
last quoted at $1.2525 GBP=D4 .
Elsewhere, the Turkish lira weakened sharply after President
Tayyip Erdogan dismissed the country's central bank governor.
The lira slid to as low as 5.8245 to the dollar
TRYTOM=D3 TRYTOM=D4 , its lowest in two weeks, in very early
Asian trade and last traded at 5.7500, after paring some of its
losses. Governor Murat Cetinkaya, whose four-year term was due to
run until 2020, was replaced by his deputy Murat Uysal, a
presidential decree published early on Saturday in the official
gazette showed. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Bets on bold first rate-cut from the Fed png https://tmsnrt.rs/2XTkkpn
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(Editing by Jacqueline Wong)