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UPDATE 1-Fed uncertainty fuels cautious dollar trades

    * Caution ahead of Fed's statement on Wednesday
    * Traders watching for clues on timing of Fed tapering
    * Bitcoin reclaims $40,000 level

 (Adds comments, data, updates prices)
    By Julien Ponthus
    LONDON, June 15 (Reuters) - The dollar stabilised near
multi-week highs on Tuesday as traders turned cautious ahead of
the Federal Reserve's two-day policy meeting which could provide
hints of any plans to start tapering its bond purchases.
    So far Fed officials, led by Chair Jerome Powell, have
stressed that rising inflationary pressures are transitory and
ultra-easy monetary settings will stay in place for some time to
come but recent economic data has raised concerns that price
pressure could force an earlier stimulus withdrawal.
    "That is exactly what makes tomorrow’s Fed meeting so
interesting: market participants simply cannot be certain which
aspect will weigh more heavily on the Fed’s mind", Commerzbank
analyst Esther Reichelt wrote in a note to her clients.
    Nearly 60% of economists in a Reuters poll expect a tapering
announcement in the next quarter.
    Investors are hoping that U.S. retail sales and a
manufacturing survey later on Tuesday will give clues as to what
to expect from the Fed's statement and news conference on
Wednesday. 
    In the meantime though, prudence is palpable across trading
floors. 
    "No USD trader will want to take too clear a position ahead
of Wednesday’s meeting as uncertainties are simply too high",
Reichelt said. 
    The dollar index edged lower in the Asian session and at
0716 GMT, was down 0.1% at 90.40, hovering near
multi-week highs. 
    Yields on benchmark 10-year U.S. Treasuries were
at 1.48%, well below the 1.60% level they were trading at toward
the beginning of June. 
    The euro rose 0.15% to $1.2126, just above a
one-month low of $1.2093 it hit last week while the yen
 hit a seven-session low of 110.02 per dollar.     
    The Australian dollar slipped to $0.7705 after
minutes from the Reserve Bank of Australia's last meeting showed
the bank was prepared to keep buying bonds even though the
economy has recovered its pre-pandemic output. 
    The impact of Britain and Australia announcing a trade deal
was still unclear but is expected to benefit Australian farmers.
    Sterling was little changed against the dollar at
$1.4118. 
    In cryptocurrencies, bitcoin was able to steady
above $40,000 on Tuesday and is approaching its 200-day moving
average - finding support from the promise of fresh investment
from major backer MicroStrategy and from Elon Musk.
    Tesla boss Musk on Sunday flagged that the carmaker
could resume transactions using the token if miners can use
cleaner energy to process them.
    Ether also got a small lift from its bigger
rival, and broke above its 20-day moving average to $2,612.
    ========================================================
    Currency bid prices at 733 GMT
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.2142        $1.2121     +0.17%         -0.63%      +1.2145     +1.2114
 Dollar/Yen                   110.0100       110.0650    -0.04%         +6.52%      +110.1450   +110.0200
 Euro/Yen         <EURJPY=EB  133.56         133.39      +0.13%         +5.23%      +133.6300   +133.3600
                  S>                                                                            
 Dollar/Swiss                 0.8972         0.8995      -0.24%         +1.42%      +0.9001     +0.8972
 Sterling/Dollar              1.4110         1.4105      +0.02%         +3.26%      +1.4128     +1.4100
 Dollar/Canadian              1.2136         1.2149      -0.12%         -4.71%      +1.2150     +1.2130
 Aussie/Dollar                0.7704         0.7712      -0.10%         +0.15%      +0.7716     +0.7696
 NZ                           0.7150         0.7144      +0.10%         -0.42%      +0.7160     +0.7132
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Volatilities 
Tokyo Forex market info from BOJ

    
 (Reporting by Julien Ponthus in London, Kevin Buckland in Tokyo
and Tom Westbrook in Singapore; Editing by Kim Coghill and
Emelia Sithole-Matarise)
  
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