* Dollar hits 14-mth lows vs euro, Aussie, CAD, FX basket
* JPMorgan earnings, global recovery optimism dent dollar
* Euro boosted after euro zone industry output data
(Adds comment, quote; changes byline)
By Jessica Mortimer
LONDON, Oct 14 (Reuters) - The dollar slid to a 14-month low
against a basket of currencies and the euro on Wednesday, dented
as solid JPMorgan Chase results, rising equities and commodities
stoked optimism about an improving global economy.
JPMorgan Chase & Co <JPM.N> reported a sharp rise in
third-quarter results as underwriting revenue at its investment
bank offset deeper losses on credit cards and other consumer
loans. []
The buoyant results followed forecast-beating earnings from
Intel Corp <INTC.O> late on Tuesday and upbeat Chinese trade
data on Wednesday, all of which helped brighten the economic
outlook and encouraged investors to move into perceived riskier
and higher-yielding currencies.
The U.S. dollar meanwhile remained under broad selling
pressure on the view that U.S. interest rates will stay at very
low levels for some time.
"Anything that points to a global recovery is hurting the
dollar at the moment," said James Hughes, market analyst at CMC
Markets.
"The JP Morgan results were pretty good and that has helped
drag it lower still," he added.
The better-than-forecast results from JP Morgan and Intel
Corp helped push the MSCI all-country world index
<.MIWD00000PUS> to a one-year high.
For a graphic on the correlation between euro/dollar and
world stocks, click on
http://graphics.thomsonreuters.com/109/GLB_MKTH1009.gif
By 1150 GMT, the euro <EUR=> had hit $1.4921 according to
trading platform EBS, its highest since August 2008.
Many in the market see the euro climbing higher and some
analysts see a break above $1.50 in coming weeks.
The dollar index <.DXY>, which tracks the dollar's value
against a basket of currencies, slid to 75.436, a trough last
seen in August 2008. The Swiss franc <CHF=> rose to around
1.0167 francs versus the dollar, its highest since July 2008.
The Australian and Canadian dollars <AUD=D4> <CAD=D4> also
hit their strongest since August 2008, while the Norwegian crown
<NOK=> rose to its firmest since September 2008 as U.S. crude
oil prices jumped to a 2009 high and gold to a record high.
[] []
NEGATIVE DOLLAR SENTIMENT
Analysts said negative dollar sentiment was the day's main
driver, adding that data showing a 0.9 percent month-on-month
rise in euro zone output offset a poll showing a fall in German
sentiment on Tuesday.
"Today's data eased some concerns about the euro zone
economy after yesterday's weak ZEW survey," said Jeremy Stretch,
strategist at Rabobank in London, adding that this had helped to
prod the euro higher.
Also pressuring the dollar were comments from Federal
Reserve Vice Chairman Donald Kohn, who on Tuesday said the
economy would not snap back quickly from its deep recession,
bolstering the view for low U.S. rates. []
Next up, U.S. retail sales for September will be released at
1230 GMT. Expectations are for a 2.1 percent fall from August,
when sales rose 2.7 percent.
Analysts said higher share prices would continue to pummel
the dollar on the view that an improving economy would decrease
demand for safe-haven dollars.
"We have seen the correlation between the equity market and
euro/dollar has declined slightly in the past month, but it is
still high by historical standards," said Kasper Kirkegaard,
currency strategist at Danske Markets in Copenhagen.
Elsewhere, the yen pared some of its earlier gains after
earlier drawing support from a senior Japanese official who
signalled yen-weakening intervention was undesirable.
[]
The dollar was down 0.1 percent at 89.62 yen <JPY=>.
(Reporting by Jessica Mortimer, editing by Nigel Stephenson)
