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FOREX-Dollar dips after Trump advisor quits, eyes on Yellen
February 14, 2017 / 2:42 PM / 7 months ago

FOREX-Dollar dips after Trump advisor quits, eyes on Yellen

* Dollar edges lower after Flynn resigns over Russian
contacts
    * Yellen to testify to Congress on Tuesday, Wednesday
    * Greenback trims losses as PPI posts biggest rise in over 4
years
    * French election concerns continue to plague euro

 (Updates market action, changes dateline, previous LONDON)
    NEW YORK, Feb 14 (Reuters) - The dollar slipped against
major currencies on Tuesday as investors reined in any
expectations for a March rise in U.S. interest rates and U.S.
President Donald Trump's national security adviser Michael Flynn
quit in a controversy over Russia.
    Investors await the semi-annual economic testimony from
Federal Reserve Chair Janet Yellen on Tuesday before Congress
where she might drop clues on the probability on a rate increase
next month as the jobs sector has improved further and inflation
has shown signs of accelerating.
    Analysts expect Yellen will unlikely offer firm signal for a
rate move at its March 14-15 policy meeting.
    Yellen will appear before the Senate Banking Committee at 10
a.m. (1500 GMT). 
    "Her prepared remarks are expected to underscore the (Fed)'s
faith in the underlying momentum of the economy, the progress
made in achieving their dual mandate and the fact that they are
close to 'full employment,'" RBC Dominion Securities strategists
wrote in a research note.
    "We do not expect specific references to a potential hike at
the March meeting, though she is expected to keep that option
fully open," they added. 
    In overnight trading, the dollar index retreated from
three-week highs after Flynn's resignation raised worries about
the Trump administration's ability to implement its economic
policies, including a "phenomenal" tax reform, which have been
seen as bullish for the greenback and stocks. 
    The gauge of the greenback versus six major currencies
 pared its initial losses after data showed U.S. producer
prices posted its largest monthly rise in more than four years
in January, supporting the view domestic inflation is
approaching the Fed's 2 percent goal. 
    The dollar index dipped 0.06 percent to 100.90, above its
session low of 100.70 but below its three-week peak of 101.11
struck on Monday.
    The euro inched up 0.1 percent against the greenback 
at $1.0608 but down 0.2 percent at 120.31 yen amid
political risk and disappointing regional economic data.
  
    The euro has come under pressure in recent sessions from
France's presidential election campaign and Greek bailout talks.
========================================================
    Currency bid prices at 9:29AM (1429 GMT)
 Description      Last           U.S. Close  Pct Change
                                  Previous   
                                  Session    
 Euro/Dollar      $1.0611        $1.0597     +0.13%
 Dollar/Yen       113.3600       113.7300    -0.33%
 Euro/Yen         120.29         120.52      -0.19%
 Dollar/Swiss     1.0039         1.0051      -0.12%
 Sterling/Dollar  1.2472         1.2526      -0.43%
 Dollar/Canadian  1.3045         1.3070      -0.19%
 Australian/Doll  0.7681         0.7638      +0.56%
 ar                                          
 Euro/Swiss       1.0653         1.0660      -0.07%
 Euro/Sterling    0.8507         0.8457      +0.59%
 NZ               0.7183         0.7175      +0.11%
 Dollar/Dollar                               
 Dollar/Norway    8.3636         8.3883      -0.29%
 Euro/Norway      8.8748         8.8921      -0.19%
 Dollar/Sweden    8.9120         8.9395      -0.15%
 Euro/Sweden      9.4594         9.4736      -0.15%
    

 (Reporting by Richard Leong in New York and Yumna Mohamed in
London; Editing by Angus MacSwan and Bill Trott)

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