* Sterling cools on doubts about Brexit deal
* Futures imply traders see one more U.S. rate cut in 2019
* Graphic: World FX rates in 2019
(Updates market action, changes dateline, previous LONDON)
By Richard Leong
NEW YORK, Sept 20 (Reuters) - The U.S. dollar rose against a
basket of currencies on Friday, putting it on track for its first
weekly increase in three, prompted by hopes of progress in U.S.-China
trade talks and that the Federal Reserve would not lower rates aggressively.
Sterling retreated from a two-month high versus the greenback
after the Irish foreign minister said that London and the European
Union were not yet close to a Brexit deal.
U.S. and Chinese deputy trade negotiators are set to continue
talks that began on Thursday in an effort to lay the groundwork for
high-level discussions in early October that will determine whether
the world's biggest economies can reach a trade deal.
While tariffs and worries about protracted supply-chain disruption
have hampered global business activity, the U.S. economy is still
faring relatively well, analysts said.
"The U.S. economy is clearly doing better than anyone
else," said Joseph Trevisani, senior analyst at FX Street in New
York. "I'm still in the stronger dollar camp."
With housing starts at a 12-year high and factory output
rebounding in August, the longest U.S. expansion on record seems to
have more legs, he said.
At 11:36 a.m. (1536 GMT), an index that tracks the dollar against
a basket of six major currencies was up 0.31% at 98.58. It was on
course to gain 0.3% on the week.
The euro fell 0.34% on the day at $1.1003, while the greenback
slipped 0.11% to 107.935 yen.
Against a favorable economic backdrop, the Fed lowered key lending
rates by a quarter point on Wednesday, but signaled a higher bar to
further reductions in borrowing costs.
Interest rates futures implied traders saw a 64% chance of another
rate cut by year-end, compared with 69% late on Thursday, CME Group's
FedWatch program showed.
Meanwhile, sterling was briefly the biggest gainer overnight
against the dollar after European Commission President Jean-Claude
Juncker said late Thursday he thought Brussels could reach agreement
with Britain on its departure from the European Union.
Sterling's gains faded after Ireland's foreign minister's comments
on a Brexit deal, and a Financial Times report that British Prime
Minister Boris Johnson had told colleagues he did not expect to be
able to reach full "legally operable" deal covering the
Irish border at a meeting of EU leaders.
The pound was down 0.19% at $1.2498 after touching a two-month
high at $1.2582. It reached a four-month high of 87.875 pence per
euro before easing to 88.03 pence, up 0.11 on the day. ========================================================
Currency bid prices at 11:34AM (1534 GMT)
Description RIC Last U.S. Close Pct Change
YTD Pct High Bid Low Bid
Euro/Dollar EUR= $1.1000 $1.1040 -0.36%
-4.09% +1.1068 +1.1001
Dollar/Yen JPY= 107.9300 108.0000 -0.06%
-2.11% +108.0800 +107.7800
Euro/Yen EURJPY= 118.73 119.27 -0.45%
-5.93% +119.3700 +118.7400
Dollar/Swiss CHF= 0.9929 0.9927 +0.02%
+1.17% +0.9935 +0.9891
Sterling/Dollar GBP= 1.2492 1.2524 -0.26%
-2.08% +1.2581 +1.2462
Dollar/Canadian CAD= 1.3264 1.3260 +0.03%
-2.74% +1.3300 +1.3255
Australian/Doll AUD= 0.6769 0.6789 -0.29%
-3.97% +0.6809 +0.6770
Euro/Swiss EURCHF= 1.0925 1.0960 -0.32%
-2.92% +1.0969 +1.0923
Euro/Sterling EURGBP= 0.8805 0.8814 -0.10%
-1.99% +0.8845 +0.8788
NZ NZD= 0.6257 0.6301 -0.70%
-6.85% +0.6308 +0.6258
Dollar/Norway NOK= 9.0514 8.9783 +0.81%
+4.78% +9.0519 +8.9656
Euro/Norway EURNOK= 9.9552 9.9136 +0.42%
+0.50% +9.9730 +9.9111
Dollar/Sweden SEK= 9.7199 9.6858 -0.03%
+8.44% +9.7272 +9.6612
Euro/Sweden EURSEK= 10.6926 10.6960 -0.03%
+4.18% +10.7195 +10.6880
(Additional reporting by Saikat Chatterjee in LONDON; Editing by
((firstname.lastname@example.org; +1 646 223 6313; Reuters