* Fed expected to cut rates on Thursday
* Britain likely to hold election in December
* Aussie gains on U.S.-China trade deal hopes
* U.S. consumer confidence fell in October
(Updates trading and comments to U.S. market open, new byline,
changes dateline, previous LONDON)
By Karen Brettell
NEW YORK, Oct 29 (Reuters) - The dollar was steady against
the euro on Tuesday as investors awaited for the outcome of the
U.S. Federal Reserve meeting on Wednesday, while sterling was
choppy as Britain looked likely to head to an election in
December.
The Fed is expected to cut rates on Wednesday and investors
will be watching for any indication that further cuts are
likely. Fed policymakers are deeply divided on whether the U.S.
central bank should be cutting rates.
The dollar may gain if the Fed indicates that further cuts
may not necessarily be forthcoming.
“We're looking for a hawkish reaction, which would lean
toward a stronger dollar,” said Mark McComick, North American
head of FX strategy at TD Securities in Toronto.
“Given that markets are looking for the Fed to prop up the
economy over the coming months, I think them signaling a little
bit of a pause would kind of reinforce some consolidation in the
dollar, especially against euro and sterling which have been
driven by the Brexit euphoria,” he said.
Increasing optimism that Britain will reach a deal to avoid
a disorderly exit from the European Union has supported the euro
and sterling in recent weeks.
Britain was heading towards a December election after Prime
Minister Boris Johnson's bet on breaking the Brexit deadlock
with an early vote gained support from opposition parties.
The EU on Monday agreed to a 3-month flexible delay to
Britain's departure. Sterling GBP= has gained to $1.2848 from $1.2193 on Oct.
8, but is below a five-month high of $1.3012 reached on Oct. 21.
The Australian dollar climbed for a third consecutive
session against the greenback on optimism that the U.S. and
China will make progress on reaching a trade agreement.
U.S. President Donald Trump said on Monday he expected to
sign a significant part of the trade deal with China ahead of
schedule but did not elaborate on the timing. The Australian economy is highly correlated to Chinese
economic strength.
The dollar index against a basket of six major currencies
.DXY fell to session lows after data showed that consumer
confidence unexpectedly fell in October. ========================================================
Currency bid prices at 10:23AM (1423 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1100 $1.1098 +0.02% -3.22% +1.1104 +1.1074
Dollar/Yen JPY= 108.9400 108.9400 +0.00% -1.21% +109.0600 +108.8400
Euro/Yen EURJPY= 120.94 120.93 +0.01% -4.18% +121.0500 +120.5900
Dollar/Swiss CHF= 0.9947 0.9944 +0.03% +1.36% +0.9964 +0.9941
Sterling/Dollar GBP= 1.2885 1.2862 +0.18% +1.00% +1.2897 +1.2808
Dollar/Canadian CAD= 1.3062 1.3050 +0.09% -4.18% +1.3069 +1.3041
Australian/Doll AUD= 0.6857 0.6838 +0.28% -2.72% +0.6860 +0.6836
Euro/Swiss EURCHF= 1.1042 1.1037 +0.05% -1.88% +1.1046 +1.1022
Euro/Sterling EURGBP= 0.8613 0.8628 -0.17% -4.13% +0.8650 +0.8609
NZ NZD= 0.6347 0.6347 +0.00% -5.51% +0.6375 +0.6340
Dollar/Dollar
Dollar/Norway NOK= 9.2545 9.2217 +0.36% +7.13% +9.3041 +9.2140
Euro/Norway EURNOK= 10.2750 10.2343 +0.40% +3.73% +10.3121 +10.2140
Dollar/Sweden SEK= 9.7258 9.7021 +0.26% +8.50% +9.7488 +9.7017
Euro/Sweden EURSEK= 10.7984 10.7700 +0.26% +5.21% +10.8045 +10.7706
(Editing by Marguerita Choy)