U.S. Secretary of State Mike Pompeo says Huawei CFO Meng Wanzhou, who is under house arrest in Canada and facing extradition to America, is not a bargaining chip in the trade...Technologyread more
Arturo Estrella has a message for recession naysayers: It could hit sooner than you think.Marketsread more
Local governments commonly share single service providers, making many vulnerable at once. On top of this, ransomware has often been used to mask more targeted, malicious...Technologyread more
Fed Chairman Jerome Powell faces the tough challenge of presenting a unified voice on Fed policy from the most divided Fed in years.Market Insiderread more
Meanwhile, investors look ahead to Fed Chair Jerome Powell's speech at a yearly central banking symposium in Jackson Hole, Wyoming.Asia Marketsread more
The office has long been a breeding ground for budding romances. But actively going into business with your other half is another thing entirely.Successread more
Salesforce released its first earnings report since its $15.3 billion acquisition of Tableau Software, the company's largest deal ever.Technologyread more
Kudlow also confirmed to CNBC that he supported a tax cut proposal floated earlier Thursday by Sen. Rick Scott, R-Fla.Politicsread more
VMware is following through on its proposal to buy Pivotal, a fellow Dell subsidiary, and expanding into cybersecurity with the acquisition of Carbon Black.Technologyread more
Google says it shut down hundreds of YouTube channels tied to misinformation around the Hong Kong protests.Technologyread more
It is a rare scenario where long-term interest rates suddenly fall below short-term interest rates.Real Estateread more
* Dollar near 2-month high, Fed seen cutting rates by 25 bps
* Pound takes breather after fall, still down 4.3% in July
* Euro lingers just off two-year lows on weak data
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Updates prices, adds chart, quote)
LONDON, July 31 (Reuters) - The dollar hovered just off two-month highs on Wednesday as robust U.S. data all but eliminated chances the Fed will deliver a half-point interest rate cut, while the euro remained near two-year lows on weak inflation and growth readings.
The Federal Reserve is expected at 1800 GMT to announce its first rate cut since 2008 and 78% of traders now price a 25 basis point cut, with the likelihood of a deeper easing diminishing as data, including second-quarter economic growth and consumer confidence, has beaten forecasts.
The focus will instead be on whether the Fed leaves the door open for further easing to insulate the economy from slowing global growth and fallout from trade conflicts.
Markets are pricing three cuts by year-end, the CME's Fedwatch tool shows.
"A 50 bps cut would provide reason for bigger swings but we see little chance of that. With President Trump yesterday demanding a larger cut in a tweet, we have a very compelling reason for the Fed to deliver just 25bps," analysts at MUFG told clients, referring to the Fed's need to show it will resist White House pressure for major easing.
While the dollar is unlikely to weaken after the cut, any mention from Fed chairman Jerome Powell of global downside risks means "scope for dollar strength should be limited", they added.
By 1000 GMT, the dollar index was flat around 98.08 after pulling back from a two-month high of 98.206 touched on Tuesday. It is however set for its biggest monthly gain since October and is up for the ninth straight day.
The dollar remains supported, moreover, from expectations the European Central Bank and the Bank of Japan will also ease policy. Even after a one percentage point drop in the Fed funds rate - a 2.25%-2.50% range - U.S. rates will remain well above most G10 peers, analysts note.
Conviction the ECB will cut rates and resume money-printing stimulus was strengthened after data showed economic growth in the euro zone halved in the second quarter.
Inflation also slowed in July, with core inflation, the measure closely watched by the ECB, at 1.1% year-on-year. It follows a slump in Germany to the lowest since November 2016.
"Given the absence of an uptrend in core inflation, weak GDP growth and the growth risks firmly pointing to the downside, the ECB looks likely to announce an entire package of stimulus measures at the September meeting," Nordea analysts said.
The ECB will implement a 10bp cut in the deposit rate, start asset purchases at a pace of 30 billion euros monthly, plus offer strengthened forward guidance, they predicted.
The euro did not react to the data but stayed around 0.1% lower at $1.1145, having hit two-year lows last week around $1.110.
The yen stood just off three-week lows to the dollar after the BOJ refrained from expanding stimulus, though it committed itself to doing so "without hesitation" if required.
The pound, which has tumbled this week as investors rushed to factor in the growing possibility of Britain leaving the European Union without transition trade arrangements in place, firmed 0.2% to $1.2167, crawling back from a 28-month trough of $1.2120 plumbed on Tuesday.
(Additional reporting by Shinichi Saoshiro in Tokyo Editing by Angus MacSwan and John Stonestreet)