July 27, 2018 / 3:18 PM / 22 days ago

FOREX-Dollar dips as robust U.S. GDP data fail to impress

    * U.S. Q2 GDP strongest in nearly four years
    * Euro steadies after losses tied to ECB sticking to policy
course
    * China's yuan hits fresh 13-month low amid trade tension
    * Graphic: World FX rates in 2018 tmsnrt.rs/2egbfVh

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, July 27 (Reuters) - The dollar slipped against a
basket of currencies on Friday as data showing the U.S. economy
rang up its strongest quarter in nearly four years failed to
erase worries that trade frictions would be a drag in the second
half of 2018.
    The euro stabilized following its biggest one-day loss in a
month in reaction to the European Central Bank on Thursday
reaffirming its plan to slowly end its accommodative monetary
policy.
    The greenback gave up initial gains after the U.S.
government reported gross domestic product grew at a 4.1 percent
annualized pace in the second quarter, matching the median
forecast among economists polled by Reuters.
    Growth accelerated from a revised 2.2 percent clip in the
first three months of the year.
    After hints from U.S. President Trump and other government
officials in recent days of a strong GDP reading for the second
quarter, "the market is well versed in a strong number," said
Alan Ruskin, global head of currency strategy in Deutsche Bank
in New York.
    The GDP, while strong on an annualized basis, was less
impressive on a year-over-year basis, coming in at 2.8 percent.
This was slower than an expected 3.1 percent pace, Ruskin said.
    At 10:51 a.m. (1451 GMT), an index that tracks the dollar
versus the euro, yen, sterling and three other currencies
was down 0.07 percent at 94.677.
    The euro was up 0.07 percent at $1.16510, while
the greenback was down 0.2 percent at 110.99 yen,
according to EBS.
    The single currency steadied after falling more than 0.7
percent on Thursday in response to the ECB sticking to ending
its 2.6 trillion euro stimulus program this year and keeping
rates at a record low level through the summer of 2019.
    That came after the euro rallied on relief about the United
States and the European Union agreeing to begin talks to lower
tariffs.
    China's yuan was heading for its longest weekly losing
streak since November 2015. It fell to a 13-month low at
6.8369 per dollar.
    The yuan has been under sustained pressure since Trump
threatened to impose tariffs on all imports from China.
    The United States and China presented radically different
visions of Beijing's economic model at the WTO on Thursday, with
Washington's ambassador criticizing "the world's most
protectionist economy" and his Chinese counterpart describing a
U.S. report as "half-cooked."
========================================================
    Currency bid prices at 11:06AM (1506 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1654        $1.1641     +0.11%         -2.85%      +1.1661     +1.1621
 Dollar/Yen       JPY=        110.9800       111.2200    -0.22%         -1.50%      +111.2400   +110.9100
 Euro/Yen         EURJPY=     129.33         129.50      -0.13%         -4.33%      +129.5300   +129.1400
 Dollar/Swiss     CHF=        0.9940         0.9940      +0.00%         +2.02%      +0.9978     +0.9932
 Sterling/Dollar  GBP=        1.3121         1.3107      +0.11%         -2.89%      +1.3131     +1.3083
 Dollar/Canadian  CAD=        1.3059         1.3071      -0.09%         +3.83%      +1.3079     +1.3042
 Australian/Doll  AUD=        0.7405         0.7376      +0.39%         -5.08%      +0.7414     +0.7371
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1587         1.1572      +0.13%         -0.87%      +1.1605     +1.1568
 Euro/Sterling    EURGBP=     0.8878         0.8880      -0.02%         -0.06%      +0.8894     +0.8874
 NZ Dollar/Dolar  NZD=        0.6792         0.6782      +0.15%         -4.15%      +0.6797     +0.6764
 Dollar/Norway    NOK=        8.1827         8.1894      -0.08%         -0.30%      +8.2143     +8.1675
 Euro/Norway      EURNOK=     9.5359         9.5359      +0.00%         -3.18%      +9.5519     +9.5190
 Dollar/Sweden    SEK=        8.8330         8.8106      +0.35%         +7.70%      +8.8684     +8.7982
 Euro/Sweden      EURSEK=     10.2947        10.2590     +0.35%         +4.63%      +10.3136    +10.2514
 
    
    
    

 (Additional reporting by Tommy Finn in LONDON
Editing by Andrew Bolton and Meredith Mazzilli)
  
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