News: FOREX-Dollar gains as Fed signals pause in rate-cutting cycle

• Fed cuts rates, but signals a pause
• U.S. economy slowed less than expected in Q3

(Recasts with Fed, adds quotes, updates prices)

The dollar gained against a basket of major currencies on Wednesday after the Federal Reserve cut interest rates for the third time this year, but signaled its rate-cut cycle might be at a pause.

In lowering its policy rate by a quarter of a percentage point to a target range of between 1.50% and 1.75%, the U.S. central bank dropped a previous reference in its policy statement that it "will act as appropriate" to sustain the economic expansion - language that was considered a sign for future rate cuts.

“That suggests that it’s going to take a little bit more weakness from here on out for the Fed to lower rates, and really it’s going to take quite a sustained turn for the worse in terms of trade discussions,” said Bipan Rai, North American head of fx strategy at CIBC Capital Markets in Toronto. “That should to a degree cap dollar bearishness in the near term.”

Comments by Fed Chairman Jerome Powell in the press conference following the U.S. central bank's statement further boosted the notion that additional cuts in the near-term are unlikely.

The current stance of monetary policy is likely to remain appropriate and it would take a material reassessment in the outlook for the Fed to change its current stance, Powell said.

The dollar index .DXY rose to 98.00 as Powell spoke, the highest since Oct. 17, before retracing back to 97.77, up 0.09% on the day.

Broad expectations heading into the meeting that the Fed would adopt a more hawkish tone was seen as limiting dollar strength.

The dollar had briefly gained earlier on Wednesday after data showed that the U.S. economy slowed less than expected in the third quarter.

The data “pointed to below trend growth, but still relatively steady and pretty solid growth in the context of what’s going on in the rest of the world,” said Erik Nelson, a currency strategist at Wells Fargo in New York.

Payrolls data for October released on Friday is the next major U.S. economic focus.

The greenback also temporarily dipped on reports that Chile has withdrawn as host of an APEC trade summit in November where the United States and China had been expected to take major steps toward ending a 15-month-old trade war.

Optimism that the U.S. and China will reach a deal has boosted risk sentiment this week.

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	Currency bid prices at 2:50PM (1850 GMT) 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	  EUR=		$1.1108		$1.1110	 -0.02%		 -3.15%	  +1.1126	 +1.1081 
 Dollar/Yen	   JPY=		109.0700	   108.8700	+0.18%		 -1.08%	  +109.2800   +108.8000 
 Euro/Yen		 EURJPY=	 121.16		 120.98	  +0.15%		 -4.01%	  +121.1900   +120.8800 
 Dollar/Swiss	 CHF=		0.9917		 0.9937	  -0.20%		 +1.05%	  +0.9945	 +0.9906 
 Sterling/Dollar  GBP=		1.2868		 1.2865	  +0.02%		 +0.87%	  +1.2905	 +1.2846 
 Dollar/Canadian  CAD=		1.3181		 1.3085	  +0.73%		 -3.34%	  +1.3207	 +1.3073 
 Australian/Doll  AUD=		0.6865		 0.6864	  +0.01%		 -2.61%	  +0.6876	 +0.6849 
 ar																							  

 Euro/Swiss	   EURCHF=	 1.1016		 1.1045	  -0.26%		 -2.11%	  +1.1049	 +1.1015 
 Euro/Sterling	EURGBP=	 0.8631		 0.8634	  -0.03%		 -3.93%	  +0.8644	 +0.8612 
 NZ			   NZD=		0.6352		 0.6354	  -0.03%		 -5.43%	  +0.6368	 +0.6335 
 Dollar/Dollar																				   

 Dollar/Norway	NOK=		9.2244		 9.2256	  -0.01%		 +6.78%	  +9.2588	 +9.2059 
 Euro/Norway	  EURNOK=	 10.2440		10.2536	 -0.09%		 +3.41%	  +10.2784	+10.2320 
 Dollar/Sweden	SEK=		9.7080		 9.7005	  +0.05%		 +8.30%	  +9.7421	 +9.6881 
 Euro/Sweden	  EURSEK=	 10.7840		10.7790	 +0.05%		 +5.07%	  +10.8210	+10.7760