* Dollar gains post-Fed statement fade
* Euro supported by Macron debate performance, data
* Commodities currencies suffer despite 'risk-on' mood
* Traders point to nerves over China, commodity price falls
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Patrick Graham
LONDON, May 4 The euro surged towards 6-month
highs around $1.0950 on Thursday as support for the dollar from
Wednesday's Federal Reserve statement faded and investors took
heart from French centrist Emmanuel Macron's performance in a TV
The dollar had gained against a number of major currencies
in early trade in Europe but buying faded as major European
names judged the Fed's meeting gave was no reason for further
ramping up bets on rises in U.S. rates this year.
That rethink knocked around half a cent off the dollar's
value against the euro to leave it trading 0.4 percent lower on
the day at $1.0928 by 1130 GMT.
"There have been some technical factors in the moves this
morning," said Ulrich Leuchtmann, head of G10 FX strategy with
Commerzbank in Frankfurt.
"The initial drop yesterday was understandable but when the
Europeans came in this morning there were some second thoughts.
The PMI data (today) and the French TV debate have also probably
helped a little."
There was buying of French stocks and bonds in response to
Macron's solid showing in his debate with anti-EU nationalist
Marine Le Pen on Wednesday, which headed off worries of a last
minute surge for the far-right candidate.
The dollar continued to perform well, however, against the
yen - reaching 113 yen for the first time in seven weeks - and
the bloc of commodity-linked currencies headed by the Australian
The weakness of the Aussie - typically a pro-growth play -
at a time when the mood on stock markets is upbeat, stems from
sharp falls in the price of iron ore and other commodities that
suggest a rise in concern about the Chinese economy.
"Something is not right in the commodities space and it has
not been right for two weeks," said Richard Benson, co-head of
portfolio investment at currency fund Millennium Global.
"The dollar is strong after the Fed but the euro cannot go
down at the moment. With commodity prices falling, that means
the strength plays out in the commodity FX space."
The broader dollar index traded less than 0.1 percent on the
day after hitting a two-week high of 99.462.
It was 0.2 percent stronger at $0.7406 per Aussie dollar
and 0.1 percent higher against the New Zealand dollar
Traders pointed to comments by JP Morgan chief Jamie Dimon
at a conference in Los Angeles. He was reported as reassuring
investors that the bank would have a bad day but would still
make money if China kicked out foreign investors.
"Recent pressure on world commodity prices culminated in
some precipitous moves overnight ... and from a technical
perspective at least, the signs are ominous," said Neil Mellor,
senior currency strategist with Bank of New York Mellon in
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Editing by Toby Chopra and Richard Lough)