October 30, 2019 / 2:02 PM / 18 days ago

FOREX-Dollar firms as U.S. GDP beats forecasts; eyes on Fed

    * US economy slowed less than expected in Q3
    * Fed expected to cut rates later on Wednesday

 (New throughout, updates prices, marekt activity and comments
to U.S. market open, new byline, changes dateline, previous
LONDON)
    By Karen Brettell
    NEW YORK, Oct 30 (Reuters) - The dollar gained on Wednesday
after data showed that the U.S. economy slowed less than
expected in the third quarter, and before the Federal Reserve is
expected to cut rates for the third time this year.
    Gross domestic product increased at a 1.9% annualized rate
in the third quarter, as declining business investment was
offset by resilient consumer spending and a rebound in exports,
the government said in its advance estimate of GDP.
    The data “pointed to below trend growth, but still
relatively steady and pretty solid growth in the context of
what’s going on in the rest of the world,” said Erik Nelson, a
currency strategist at Wells Fargo in New York.
    The dollar index jumped to a session high of 97.75 after the
data, overturning earlier weakness that analysts said was partly
attributable to month-end portfolio rebalancing. It was last
97.71, up from a low of 97.58 reached earlier on Wednesday.
    Other data showed that U.S. private employers added 125,000
jobs in October, slightly above economists' expectations.

    Investors are next focused on whether The U.S. central bank
will indicate further rate cuts are likely at the conclusion of
its two-day meeting, with a cut today viewed as a done deal.
    Fed policymakers are divided on the path of rates. A cut
today pared with hawkish comments on the economic outlook should
 support the greenback.
    Sterling strengthened slightly, with Britain set to hold its
first December election in almost a century after Prime Minister
Boris Johnson won parliamentary approval for a snap ballot to
break the Brexit deadlock.
    The EU on Monday agreed to a three-month flexible delay to
Britain's departure.
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    Currency bid prices at 11:46AM (1546 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1108        $1.1098     +0.09%         -3.15%      +1.1114     +1.1074
 Dollar/Yen       JPY=        108.9300       108.9400    -0.01%         -1.21%      +109.0600   +108.8400
 Euro/Yen         EURJPY=     121.00         120.93      +0.06%         -4.14%      +121.0600   +120.5900
 Dollar/Swiss     CHF=        0.9944         0.9944      +0.00%         +1.32%      +0.9964     +0.9934
 Sterling/Dollar  GBP=        1.2883         1.2862      +0.16%         +0.99%      +1.2897     +1.2808
 Dollar/Canadian  CAD=        1.3066         1.3050      +0.12%         -4.19%      +1.3072     +1.3041
 Australian/Doll  AUD=        0.6866         0.6838      +0.41%         -2.60%      +0.6871     +0.6836
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1047         1.1037      +0.09%         -1.84%      +1.1049     +1.1022
 Euro/Sterling    EURGBP=     0.8621         0.8628      -0.08%         -4.04%      +0.8650     +0.8609
 NZ               NZD=        0.6356         0.6347      +0.14%         -5.37%      +0.6375     +0.6340
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.2329         9.2217      +0.12%         +6.88%      +9.3041     +9.2140
 Euro/Norway      EURNOK=     10.2560        10.2343     +0.21%         +3.53%      +10.3121    +10.2140
 Dollar/Sweden    SEK=        9.7203         9.7021      +0.27%         +8.44%      +9.7488     +9.7017
 Euro/Sweden      EURSEK=     10.7991        10.7700     +0.27%         +5.21%      +10.8045    +10.7706
 
 (Editing by David Gregorio)
  
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