(Adds detail, updates prices) MELBOURNE, Jan 31 (Reuters) - London metals shrugged off slightly softer-than-expected Chinese manufacturing data on Tuesday to edge higher as the dollar eased, but conviction was lacking ahead of the outcome of the Federal Reserve's two-day meeting. Metals found a firmer footing after the dollar inched lower against a basket of major rivals on Wednesday, showing scant reaction so far to U.S. President Donald Trump's State of the Union address. Standard Chartered said however given a "more favorable macro environment - a weaker US and our expectations for global growth" it has raised some of its metals price forecasts, including for copper by $550 to $7,150 a tonne for this year.
* COPPER: London Metal Exchange copper traded up by 1.1 percent at $7,120.50 a tonne by 0700 GMT in light volume following a 0.5 percent loss in the previous session when prices hit the lowest in nearly a week at $6,994 a tonne. Shanghai Futures Exchange copper cut losses to 0.1 percent at 53,220 yuan ($8,452) a tonne.
* ARBITRAGE: Even thought the import differential favors shipping copper into China at the minute, traders are cautious because they do not want to hold stock over Chinese New Year, a trader said. The Lunar New Year holiday starts on Feb. 15.
* CHINA ECONOMY: Growth in China's manufacturing sector slowed more than expected in January to an eight-month low in the face of a cooling property market and tighter pollution rules that have curtailed factory output. The official Purchasing Managers' Index (PMI) dipped to 51.3 in January, from 51.6 in December.
* CHINA SMOG: China is drawing up plans to extend curbs on smog over the 2018-2020 period, an environment ministry official said on Wednesday, after a five-year crackdown on pollution helped it meet its air quality targets last month.
* FOMC: The U.S. Federal Reserve Open Market Committee will issue a statement at 1700 GMT, with most analysts expecting the bank to hold rates steady but take a hawkish position on the economy.
* TRUMP: U.S. President Donald Trump urged lawmakers on Tuesday to work toward bipartisan compromises, but pushed a hard line on immigration and pledged to revive infrastructure.
* JANUARY PERFORMANCE: Metals played catch up in January. LME tin was set to have surged by more than 8 percent while metals where output was impacted by China's winter pollution crackdown rallied. LME zinc and nickel both climbed more than 6 percent, while lead rose nearly 5 percent.
BASE METALS PRICES 0701 GMT Three month LME copper 7120 Most active ShFE copper 53210 Three month LME aluminum 2218.5 Most active ShFE aluminum 14440 Three month LME zinc 3533 Most active ShFE zinc 26780 Three month LME lead 2602 Most active ShFE lead 19400 Three month LME nickel 13515 Most active ShFE nickel 102620 Three month LME tin 21740 Most active ShFE tin 150130
BASE METALS ARBITRAGE
LME/SHFE COPPER LMESHFCUc3 984.4 LME/SHFE ALUMINIUM LMESHFALc3 -1776.22 LME/SHFE ZINC LMESHFZNc3 421.32 LME/SHFE LEAD LMESHFPBc3 -358.22 LME/SHFE NICKEL LMESHFNIc3 2009.54
($1 = 6.3272 Chinese yuan renminbi)
(Reporting by Melanie Burton; Editing by Richard Pullin and Christian Schmollinger)