* US economy slowed less than expected in Q3
* Fed expected to cut rates later on Wednesday
(New throughout, updates prices, marekt activity and comments
to U.S. market open, new byline, changes dateline, previous
LONDON)
By Karen Brettell
NEW YORK, Oct 30 (Reuters) - The dollar gained on Wednesday
after data showed that the U.S. economy slowed less than
expected in the third quarter, and before the Federal Reserve is
expected to cut rates for the third time this year.
Gross domestic product increased at a 1.9% annualized rate
in the third quarter, as declining business investment was
offset by resilient consumer spending and a rebound in exports,
the government said in its advance estimate of GDP. The data “pointed to below trend growth, but still
relatively steady and pretty solid growth in the context of
what's going on in the rest of the world,” said Erik Nelson, a
currency strategist at Wells Fargo in New York.
The dollar index jumped to a session high of 97.75 after the
data, overturning earlier weakness that analysts said was partly
attributable to month-end portfolio rebalancing. It was last
97.71, up from a low of 97.58 reached earlier on Wednesday.
Other data showed that U.S. private employers added 125,000
jobs in October, slightly above economists' expectations.
Investors are next focused on whether The U.S. central bank
will indicate further rate cuts are likely at the conclusion of
its two-day meeting, with a cut today viewed as a done deal.
Fed policymakers are divided on the path of rates. A cut
today pared with hawkish comments on the economic outlook should
support the greenback.
Sterling strengthened slightly, with Britain set to hold its
first December election in almost a century after Prime Minister
Boris Johnson won parliamentary approval for a snap ballot to
break the Brexit deadlock. The EU on Monday agreed to a three-month flexible delay to
Britain's departure. Currency bid prices at 11:46AM (1546 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1108 $1.1098 +0.09% -3.15% +1.1114 +1.1074
Dollar/Yen JPY= 108.9300 108.9400 -0.01% -1.21% +109.0600 +108.8400
Euro/Yen EURJPY= 121.00 120.93 +0.06% -4.14% +121.0600 +120.5900
Dollar/Swiss CHF= 0.9944 0.9944 +0.00% +1.32% +0.9964 +0.9934
Sterling/Dollar GBP= 1.2883 1.2862 +0.16% +0.99% +1.2897 +1.2808
Dollar/Canadian CAD= 1.3066 1.3050 +0.12% -4.19% +1.3072 +1.3041
Australian/Doll AUD= 0.6866 0.6838 +0.41% -2.60% +0.6871 +0.6836
Euro/Swiss EURCHF= 1.1047 1.1037 +0.09% -1.84% +1.1049 +1.1022
Euro/Sterling EURGBP= 0.8621 0.8628 -0.08% -4.04% +0.8650 +0.8609
NZ NZD= 0.6356 0.6347 +0.14% -5.37% +0.6375 +0.6340
Dollar/Dollar
Dollar/Norway NOK= 9.2329 9.2217 +0.12% +6.88% +9.3041 +9.2140
Euro/Norway EURNOK= 10.2560 10.2343 +0.21% +3.53% +10.3121 +10.2140
Dollar/Sweden SEK= 9.7203 9.7021 +0.27% +8.44% +9.7488 +9.7017
Euro/Sweden EURSEK= 10.7991 10.7700 +0.27% +5.21% +10.8045 +10.7706
(Editing by David Gregorio)