News: FOREX-Dollar slides for 3rd day on U.S. rate cut bets

• U.S. produce prices rise modestly
• Futures market sees U.S. rate cut in July
• Euro slightly lower after comments from ECB official
• Fed's Evans says rate cuts needed to lift inflation
• Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Adds new comment, updates prices)

The dollar weakened for a third straight session on Friday, still pressured by expectations the Federal Reserve will start cutting interest rates at a monetary policy meeting later this month.

Against a basket of other currencies .DXY , the dollar fell 0.1% to 97.004, posting its worst daily loss against the yen and Swiss franc in more than three weeks.

The dollar briefly trimmed losses after U.S. data showed producer prices rose slightly in June, up 0.1% following a similar gain in May. In the 12 months through June, the PPI rose 1.7%, the smallest gain since January 2017.

Joe Manimbo, senior market analyst, at Western Union Business Solutions in New York said the PPI increase should not shake U.S. rate cut expectations.

Until the Fed's preferred gauge of inflation, the core personal consumption expenditures price (PCE) index, shows convincing signs of heating up from a low 1.6%, the Fed is unlikely to change its stance on cutting rates this month, he added.

The producer prices data followed a report on Thursday showing the core U.S. consumer price index, excluding food and energy, rose 0.3% in June, the largest increase since January 2018.

The CPI reading pushed U.S. Treasury yields higher, but money markets still indicated one rate cut at the end of July and a cumulative 64 basis points in cuts by the end of 2019, especially after Fed Chairman Jerome Powell flagged such a move in his two-day testimony before Congress this week.

That should be dollar-negative in general, analysts said. But Jane Foley, head of FX strategy at Rabobank in London, believes dollar weakness will not be as severe as many anticipated because other major central banks are easing as well.

"The dovish stances of most other G10 central banks is offsetting the impact of potential Fed action on the U.S. dollar crosses," Foley said, noting, for instance, that she expects the European Central Bank to cut its discount rate further into negative territory at its September meeting.

The euro, as a result, has been on a downtrend since the beginning of the year, down 1.7%.

However, the single currency on Friday rose 0.2% versus the dollar to $1.1271 EUR= , after earlier slipping following comments from ECB Governing Council member Ignazio Visco saying the bank will need to adopt further expansionary measures if the euro zone economy does not pick up. He said the ECB will consider its options "in the coming weeks."

The market has also been monitoring Fed speakers. Chicago Fed President Charles Evans on Friday said the U.S. economy still has "very solid fundamentals" with a vibrant labor market. He said he viewed the Fed's monetary policy as neutral, but it could be more accommodative if the goal is to lift inflation.

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	Currency bid prices at 3:25PM (1925 GMT) 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	  EUR=		$1.1271		$1.1252	 +0.17%		 -1.73%	  +1.1275	 +1.1239 
 Dollar/Yen	   JPY=		107.8100	   108.4800	-0.62%		 -2.22%	  +108.6000   +107.8100 
 Euro/Yen		 EURJPY=	 121.54		 122.09	  -0.45%		 -3.71%	  +122.2300   +121.5200 
 Dollar/Swiss	 CHF=		0.9841		 0.9900	  -0.60%		 +0.28%	  +0.9908	 +0.9837 
 Sterling/Dollar  GBP=		1.2571		 1.2519	  +0.42%		 -1.46%	  +1.2575	 +1.2519 
 Dollar/Canadian  CAD=		1.3032		 1.3072	  -0.31%		 -4.44%	  +1.3078	 +1.3018 
 Australian/Doll  AUD=		0.7021		 0.6973	  +0.69%		 -0.40%	  +0.7025	 +0.6971 
 ar																							  

 Euro/Swiss	   EURCHF=	 1.1093		 1.1141	  -0.43%		 -1.43%	  +1.1154	 +1.1073 
 Euro/Sterling	EURGBP=	 0.8965		 0.8988	  -0.26%		 -0.21%	  +0.8991	 +0.8956 
 NZ			   NZD=		0.6694		 0.6659	  +0.53%		 -0.34%	  +0.6698	 +0.6659 
 Dollar/Dollar																				   

 Dollar/Norway	NOK=		8.5388		 8.5386	  +0.00%		 -1.16%	  +8.5583	 +8.5199 
 Euro/Norway	  EURNOK=	 9.6257		 9.6115	  +0.15%		 -2.83%	  +9.6264	 +9.6054 
 Dollar/Sweden	SEK=		9.3704		 9.3805	  +0.08%		 +4.54%	  +9.3910	 +9.3603 
 Euro/Sweden	  EURSEK=	 10.5644		10.5562	 +0.08%		 +2.93%	  +10.5651	+10.5399 
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US real interest rates and DXY	http//tmsnrt.rs/32niorZ 

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