ECB leaves rates unchanged, sees risks ahead Traders eye UK PM...

• ECB leaves rates unchanged, sees risks ahead
• Traders eye UK PM May's Brussels trip after no-confidence vote
• Optimism on U.S.-China trade relations boosts dollar
• Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh

(Updates market action, adds quote)

The euro held steady against the dollar on Thursday after the European Central Bank, as expected, halted new bond purchases and promised to maintain policy support for the euro zone due to risks from trade tensions, Brexit and budget woes in Italy and France.

Sterling edged higher following UK Prime Minister Theresa May's prevailing in her party's vote on her leadership the day before. It had rallied on Wednesday in anticipation as traders bet her win might allow her to negotiate more generous terms for Britain in its exit from the European Union in March.

The dollar was firm against most major currencies stemming from optimism on some progress between China and the United States to resolve their trade issues, analysts said.

"Continuing confidence and increasing caution," was how ECB President Mario Draghi at his news conference described the ECB's decision for ending the 2.6 trillion euro ($2.95 trillion), four-year-long quantitative easing program. It will reinvest cash from maturing bonds.

On the other hand, the ECB kept its primary rate target at -0.40 percent. It also marked down its outlook on regional growth.

"The euro is holding in pretty well," said Lee Ferridge, North American head of cross-asset strategy at State Street Global Markets in Boston. "That's a hopeful sign for the future."

At 2:46 p.m. (1946 GMT), the single currency was 0.03 percent higher at $1.1366. It has been trading in a range of $1.12 to $1.15 since early November.

Against the pound, it slipped 0.19 percent at 89.88 pence. Sterling notched higher amid uncertainty on what more May, who is currently in Brussels, could get from EU leaders to improve on her Brexit proposal in a bid to achieve parliamentary approval.

On Monday, May scrapped a vote on her current plan, sending the pound to a 20-month low against the dollar and triggering a no-confidence vote on her leadership.

The sterling was up 0.21 percent at $1.2653, just below its session peak of $1.2687 and above a 20-month low of $1.2477 reached on Wednesday.

An index that tracks the greenback against the euro, sterling and four other currencies was 0.04 percent higher at 97.082.

U.S. President Donald Trump's upbeat comments on trade talks with China and Beijing's first major purchase of U.S. soybeans in months boosted the dollar.

"While not settled, sentiment has improved," Paresh Upadhyaya, director of currency strategy at Amundi Pioneer Investments in Boston, said of renewed optimism about U.S.-Sino trade relations.

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	Currency bid prices at 2:45PM (1945 GMT) 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	  EUR=		$1.1364		$1.1368	 -0.04%		 -5.27%	  +1.1393	 +1.1331 
 Dollar/Yen	   JPY=		113.6000	   113.2700	+0.29%		 +0.83%	  +113.7000   +113.2100 
 Euro/Yen		 EURJPY=	 129.09		 128.77	  +0.25%		 -4.51%	  +129.2500   +128.7200 
 Dollar/Swiss	 CHF=		0.9935		 0.9935	  +0.00%		 +1.97%	  +0.9954	 +0.9913 
 Sterling/Dollar  GBP=		1.2652		 1.2629	  +0.18%		 -6.36%	  +1.2685	 +1.2610 
 Dollar/Canadian  CAD=		1.3356		 1.3349	  +0.05%		 +6.19%	  +1.3383	 +1.3338 
 Australian/Doll  AUD=		0.7224		 0.7219	  +0.07%		 -7.40%	  +0.7247	 +0.7213 
 ar																							  

 Euro/Swiss	   EURCHF=	 1.1292		 1.1292	  +0.00%		 -3.40%	  +1.1301	 +1.1267 
 Euro/Sterling	EURGBP=	 0.8980		 0.9000	  -0.22%		 +1.09%	  +0.9016	 +0.8953 
 NZ Dollar/Dolar  NZD=		0.6860		 0.6854	  +0.09%		 -3.18%	  +0.6879	 +0.6843 
 Dollar/Norway	NOK=		8.5605		 8.5686	  -0.09%		 +4.31%	  +8.5949	 +8.5314 
 Euro/Norway	  EURNOK=	 9.7287		 9.7416	  -0.13%		 -1.22%	  +9.7589	 +9.7085 
 Dollar/Sweden	SEK=		9.0571		 9.0855	  -0.33%		 +10.43%	 +9.0940	 +9.0372 
 Euro/Sweden	  EURSEK=	 10.2940		10.3280	 -0.33%		 +4.62%	  +10.3388	+10.2725 
   
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GRAPHIC-The European Central Bank's QE programme	http//tmsnrt.rs/2SCrn2I 

GRAPHIC-As Fed hikes rates, ECB keeps rates at record lows http//tmsnrt.rs/2SJp6CS GRAPHIC-Euro, sterling since Brexit referendum http//tmsnrt.rs/2ytup0V GRAPHIC-Euro, sterling since Brexit referendum interactive http//tmsnrt.rs/2yv9XwN

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