December 21, 2017 / 8:57 PM / 6 months ago

FOREX-Dollar inches lower for 3rd day in pre-holiday thin trading

    * U.S. economic reports provide brief boost
    * U.S. tax package may not generate more jobs-analyst
    * BOJ keeps policy steady, as expected

 (Recasts, adds comment, updates prices, table)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Dec 21 (Reuters) - The dollar slipped for a third
straight day on Thursday in thin trading, with investors
hesitant to make big bets ahead of the holidays, as market
participants digested a U.S. tax reform plan that so far has had
limited impact on the currency.
    Going into the year-end, the greenback was on track to post
its worst annual performance in 14 years. The medium-term
outlook for the dollar though has turned a little more positive
than what many on Wall Street had priced in. That is due to
expected rate hikes from the Federal Reserve next year and, at
the very least, some benefits from the U.S. tax program.
    The Republican-controlled U.S. Congress this week approved a
broad package of tax cuts in what has been described as the
largest overhaul of the tax code in 30 years. President Donald
Trump could sign the tax bill into law soon.
    "The tax cuts, which were a major campaign promise of the
Trump team, have had a smaller impact on the dollar thus far,
than many had expected earlier in the year," said Omer Esiner,
chief market analyst, at Commonwealth Foreign Exchange in
Washington.
     Esiner believes the tax package will ultimately do very
little to boost U.S. employment.
    Thursday's U.S. economic data, however, provided some brief
support for the dollar earlier. But as trading desks started to
thin out ahead of the holidays, the dollar has settled near the
lower end of its trading ranges.
    Data showed that the U.S. economy grew at 3.2 percent in the
third quarter, its fastest pace in more than two years, boosted
by robust business spending.
    The Philadelphia Fed business conditions index for December
was also solid, with a higher-than-expected reading of 26.2.

    In late trading, the dollar was slightly lower against a
currency basket at 93.264.    
    The euro was up modestly against the dollar at $1.1873
, having gained around 1 percent so far this week,
supported by a rise in German bond yields.
    Against the yen, the dollar hit a more than one-week high
after comments by Bank of Japan Governor Haruhiko Kuroda
reinforced expectations that the BOJ was in no hurry to move
away from its ultra-loose monetary policy.
   
    Some investors had expected hints that such a policy might
be coming to an end and the BOJ might raise its yield target for
Japanese government bonds, after a recent speech by Kuroda
referring to the negative effects of ultra-expansionary monetary
policy 
    The dollar was last at 113.32 yen, down slightly on
the day. 
    
========================================================
    Currency bid prices at 3:32PM (2032 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1874        $1.1869     +0.04%         +12.95%     +1.1889     +1.1850
 Dollar/Yen       JPY=        113.3100       113.3800    -0.06%         -3.05%      +113.6300   +113.2100
 Euro/Yen         EURJPY=     134.53         134.60      -0.05%         +9.25%      +134.8800   +134.4600
 Dollar/Swiss     CHF=        0.9879         0.9869      +0.10%         -2.94%      +0.9909     +0.9855
 Sterling/Dollar  GBP=        1.3380         1.3373      +0.05%         +8.46%      +1.3386     +1.3333
 Dollar/Canadian  CAD=        1.2732         1.2834      -0.79%         -5.20%      +1.2839     +1.2700
 Australian/Doll  AUD=        0.7703         0.7666      +0.48%         +6.76%      +0.7707     +0.7655
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1732         1.1713      +0.16%         +9.47%      +1.1750     +1.1699
 Euro/Sterling    EURGBP=     0.8873         0.8873      +0.00%         +4.17%      +0.8890     +0.8868
 NZ               NZD=        0.7012         0.7010      +0.03%         +1.02%      +0.7019     +0.6988
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.3623         8.4093      -0.56%         -3.18%      +8.4184     +8.3635
 Euro/Norway      EURNOK=     9.9309         9.9809      -0.50%         +9.30%      +9.9930     +9.9281
 Dollar/Sweden    SEK=        8.3800         8.3939      -0.19%         -7.99%      +8.4199     +8.3798
 Euro/Sweden      EURSEK=     9.9496         9.9687      -0.19%         +3.86%      +9.9988     +9.9490
 
    
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Jemima Kelly in London; Editing by Meredith Mazzilli and Chizu
Nomiyama)
  
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