* Euro extends gains after euro zone lending survey
* ECB's comments on QE help euro
* Canadian dollar recovers after early post-election losses
(Adds comments, updates prices)
By Gertrude Chavez-Dreyfuss and Dion Rabouin
NEW YORK, Oct 20 (Reuters) - The euro rose against the
dollar on Tuesday after falling for three straight sessions,
bolstered by solid regional economic data and comments from
European Central Bank officials suggesting further monetary
easing may not be imminent.
Quarterly lending data from the ECB showed euro zone banks
loosened their lending standards more than expected over the
last few months despite recent global market volatility. That
lessened the need for the ECB to ramp up its 1 trillion euro
asset purchase program, this week at least.
Separately, current account data from the euro zone showed
portfolio inflows continued at a brisk pace, a factor that has
been supporting the euro in recent months. ECONEZ
"What actually changed the euro was that banks have a
lending survey and for October it was very positive - only
pointed out positives and so there's no need for the European
Central Bank to increase quantitative easing," said Juan Perez,
foreign currency trader, at Tempus Consulting in Washington.
In addition, ECB governing council member Christian Noyer
said the central bank's quantitative easing program was well
calibrated and did not need to be adjusted. urn:newsml:reuters.com:*:nL8N12J3V4
That followed similar remarks from Austrian central bank
chief Ewald Nowotny, who had suggested looking at other ways to
stimulate a still-struggling euro zone economy. urn:newsml:reuters.com:*:nL8N12J12H
Joe Manimbo, senior market analyst at Western Union Business
Solutions in Washington, said the ECB could use the meeting and
the subsequent press briefing to undercut some of the euro's
recent strength, which does not help the region's battle against
low inflation. Despite massive asset buying by the ECB, the euro
has gained nearly 5 percent versus the dollar over the last
three months.
Going into Thursday's policy meeting, investors had been
factoring in further quantitative easing from the ECB. Major
banks, including Barclays (L:BARC) and Goldman Sachs (N:GS), began the week by
calling for the euro to weaken into Thursday's meeting.
In late New York trading, the euro was up 0.1 percent at
$1.1341, rebounding from a 10-day low hit on Monday. That
slightly put pressure on the dollar index, which was down 0.1
percent at 94.880 .DXY .
CANADIAN DOLLAR
The Canadian dollar CAD= , a big loser on Monday ahead of
election results that gave a shock victory to Liberal leader
Justin Trudeau, was back in positive territory against the U.S.
dollar on Tuesday. urn:newsml:reuters.com:*:nL1N12J16L
The U.S. dollar last traded down 0.3 percent at C$1.2978.
Bank of Canada policymakers meet on Wednesday, with a large
majority of analysts polled by Reuters seeing no change in
interest rates. ID:nL3N12F4WJ