* Dollar falls, paring some of the previous day's gains
* Market eyes euro zone Q3 GDP at 1000 GMT
* US President Obama kicks off Asia tour; FX in focus
(Updates prices, changes byline, dateline; previous TOKYO)
By Jessica Mortimer
LONDON, Nov 13 (Reuters) - The dollar edged lower on Friday,
paring some of the previous day's gains following a bout of
profit-taking in perceived riskier currencies, with focus on the
release of euro zone gross domestic product data.
The U.S. dollar gained on short-covering on Thursday,
prompted by softer equities and a fall in oil, but this petered
out, with most in the market believing the broad trend towards
dollar weakness remains intact.
Figures due at 1000 GMT are expected to show the euro zone
economy leapt out of recession in the third quarter and analysts
believe this could give the euro a boost. A Reuters poll
forecasts the data will show a 0.5 percent quarterly rise over
the period. <ECON> []
GDP data out of Germany has already been released and showed
a 0.7 percent quarterly rise, while the French economy also grew
by 0.3 percent in the third quarter, although this was slower
than forecast. [] []
"The euro zone GDP data will be the main focus for today,
and the euro could see some support if we get the confirmation
that the euro zone has come out of recession," said Sverre
Holbek, currency strategist at Danske Bank in Copenhagen.
"But otherwise general risk appetite is likely to be the
driver, with currency markets looking to equity and commodity
markets," he added.
Markets will also be watching for the release of University
of Michigan U.S. consumer confidence data at 1455 GMT, as well
as a speech by European Central Bank Governing Council member
Axel Weber in Berlin at 1315 GMT.
At 0853 GMT, the euro had gained 0.3 percent to $1.4888
<EUR=>. The single currency fell 1 percent on Thursday, coming
under pressure due to broad dollar strength and as sources said
Germany could be set to inject capital into WestLB [].
[]
The dollar index <.DXY>, a gauge of the greenback's
performance against six major currencies, fell 0.3 percent to
75.408 after rising as high as 75.767 on Thursday.
This leaves it comfortably above a 15-month low of 74.774,
but the U.S. currency remains within a well-defined downtrend
channel that stretches back to May.
"The dollar short-covering seems to be losing steam and the
dollar bear market looks like it's coming back. But it's hard to
bet on a certain direction and build large positions now," said
Jun Kato, senior chief analyst at Shinkin Central Bank Research
Institute in Tokyo.
Among perceived riskier currencies, the Australian dollar
<AUD=D4> gained 0.6 percent against the dollar to $0.9282.
The dollar also dipped 0.2 percent against the yen <JPY=> to
90.14 yen.
Currency markets will also be following U.S. President
Barack Obama's first official tour of Asia as speculation grew
that this could generate pressure on some countries -- China in
particular -- to let their currencies rise. []
High on the agenda will be U.S. calls for Asian countries
to do more to stimulate domestic demand instead of relying on
exports to America, though dealers and analysts were sceptical
that any change would happen soon.
"With the APEC summit having concluded, but President Obama
arriving in Asia for his first visit as President, Asia currency
flexibility will be in focus in coming days," ING analysts said
in a note to clients.
(Reporting by Jessica Mortimer; editing by Chris Pizzey)
