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FOREX-Dollar dips as jobs growth disappoints before Powell speech


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      Graphic: World FX rates https://tmsnrt.rs/2RBWI5E



 (Adds quotes, details; updates prices; changes byline; previous
LONDON)
    By Karen Brettell
       NEW YORK, Nov 30 (Reuters) - The dollar slipped on
Wednesday as an estimate of jobs gains in November missed
expectations before a highly anticipated speech by Federal
Reserve Chairman Jerome Powell.
    The dollar index added to earlier losses after the ADP
National Employment report showed that U.S. private payrolls
increased far less than expected in November, suggesting demand
for labor was cooling amid high interest rates.
    It briefly pared some losses, however, after data showed
that the U.S. economy rebounded more strongly than initially
thought in the third quarter, with gross domestic product
increasing at a 2.9% annualized rate.
    "You have the data potentially reaching a turning point,
which is celebrated by the market because it reinforces that
expectation that the Fed is not only downshifting, but maybe
yields are nearing a limited runway in terms of how much more
tightening there is to go," said Mazen Issa, senior FX
strategist at TD Securities in New York.
    Investors are focused on whether Powell will give any new
indications that the U.S. central bank may be nearing the end of
its tightening cycle when he speaks on Wednesday afternoon.
    The dollar index has fallen to 106.39 from a 20-year
high of 114.78 on Sept. 28 and is on track for its biggest
monthly loss since September 2010 as investors look toward the
U.S. central bank reaching a peak rate early next year.
    Powell may push back against the notion that a pivot is
coming soon given the uncertainty of future jobs and inflation
releases.
    Greater divergence between the views of various Fed
officials on future monetary policy could also muddy market
expectations.
    "There's a little bit more variation in the tone of the Fed
from several members so as much as he may come out hawkish. I
think the market is going to discount some of that," said Issa.
    The U.S. central bank is expected to hike rates by an
additional 50 basis points when it meets on Dec. 13-14. Traders
are pricing for the fed funds rate to peak at 5.06% in June,
from 3.83% now, before falling back to 4.69% by Dec. 2023.

    The euro rose 0.51% against the U.S. currency to
$1.0381. The greenback gained 0.41% to 139.28 Japanese yen
.
    Data earlier on Wednesday showed that euro zone inflation
eased far more than expected in November, raising hopes that
sky-high price growth is now past its peak and bolstering, if
not outright sealing the case for a slowdown in European Central
Bank rate hikes next month.
    The Aussie jumped, meanwhile, on hopes that China will ease
stringent COVID-19 restrictions which have raised concerns about
global growth, with the southern city of Guangzhou becoming the
latest to announce an easing of curbs on Wednesday.
     The Australian dollar rose 0.57% to $0.6725. The
offshore yuan also gained to 7.0760 against the U.S.
dollar, the strongest since Nov. 16.
    ========================================================
    Currency bid prices at 9:30AM (1430 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change
                                              Session
 Dollar index                 106.3900       106.8600    -0.42%         11.213%       +106.9000   +106.2800
 Euro/Dollar                  $1.0381        $1.0328     +0.51%         -8.69%        +$1.0392    +$1.0319
 Dollar/Yen                   139.2800       138.7050    +0.41%         +20.99%       +139.4500   +138.3350
 Euro/Yen                     144.58         143.26      +0.92%         +10.94%       +144.6100   +143.1800
 Dollar/Swiss                 0.9501         0.9542      -0.43%         +4.16%        +0.9547     +0.9484
 Sterling/Dollar              $1.2013        $1.1953     +0.50%         -11.17%       +$1.2029    +$1.1942
 Dollar/Canadian              1.3502         1.3581      -0.57%         +6.80%        +1.3593     +1.3498
 Aussie/Dollar                $0.6725        $0.6687     +0.57%         -7.48%        +$0.6741    +$0.6671
 Euro/Swiss                   0.9864         0.9850      +0.14%         -4.87%        +0.9873     +0.9835
 Euro/Sterling                0.8640         0.8642      -0.02%         +2.86%        +0.8658     +0.8622
 NZ                           $0.6236        $0.6200     +0.56%         -8.90%        +$0.6251    +$0.6191
 Dollar/Dollar
 Dollar/Norway                9.8715         10.0045     -1.31%         +12.07%       +10.0070    +9.8730
 Euro/Norway                  10.2422        10.3204     -0.76%         +2.29%        +10.3528    +10.2520
 Dollar/Sweden                10.5353        10.5736     +0.06%         +16.83%       +10.6027    +10.5145
 Euro/Sweden                  10.9326        10.9256     +0.06%         +6.83%        +10.9503    +10.9120
 (Additional reporting by Amanda Cooper in London
Editing by Raissa Kasolowsky)

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