* All eyes on Fed's policy decision due later Wednesday
* UK to hold general election on Dec 12 to break Brexit
deadlock
* US-China deal may not be ready for signing at APEC
summit:source
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Tomo Uetake
TOKYO, Oct 30 (Reuters) - The dollar traded narrowly as
markets braced for a rate cut by the Federal Reserve later on
Wednesday, while sterling steadied as Britain heads for an early
general election the prime minister hopes will break the
deadlock over Brexit.
The dollar was steady against the euro at $1.1111 EUR= and
flat versus a basket of six major currencies at 97.682 .DXY as
investors awaited the Fed's interest rate decision.
Against the yen, the greenback was also little moved at
108.83 yen JPY= .
The U.S. central bank is expected to cut rates for a third
time in a row when it concludes its two-day meeting on
Wednesday.
"With a cut today completely priced in, markets are looking
to the Fed's stance on its policy outlook," said Masahiro
Ichikawa, senior strategist at Sumitomo Mitsui DS Asset
Management.
"The Fed will probably try to avoid sounding too dovish. Its
message will essentially be that while it could act in December
if needed, it won't unless there are big uncertainties on the
economy."
Optimism that Washington and Beijing would finalise the
first-stage of a trade deal next month had boosted risk assets
in recent days, but markets turned wary on the prospect this
could be delayed.
A U.S. administration official said on Tuesday an interim
trade agreement between the United States and China might not be
completed in time for signing in Chile next month as expected,
but that does not mean the accord is falling apart. Meanwhile, hopes that a disorderly Brexit can still be
avoided supported the pound.
Britain will hold its first December election in almost a
century after Prime Minister Boris Johnson won approval from
parliament on Tuesday for an early ballot aimed at breaking the
deadlock over the UK leaving the European Union. On Monday, the EU agreed to a three-month flexible delay to
Britain's departure. The pound climbed as high as $1.2903 overnight on news that
an election date was likely to be agreed but pared gains after
the House of Commons approved Johnson's bill calling for a Dec.
12 election by 438 to 20.
Cable last stood at $1.2867 GBP=D4 .
"Sterling has struggled to hold onto modest knee-jerk gains
because the outcome of an election is highly uncertain," said
Ray Attrill, head of FX strategy at National Australia Bank.