* Euro extends gains after euro zone lending survey
* ECB comments on possible no further QE help euro
* Canadian dollar recovers after early post-election losses
(Adds comments, updates trading, changes byline, dateline;
previous LONDON)
By Gertrude Chavez-Dreyfuss
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
had 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
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
"The euro zone data and Noyer's remarks doused expectations
that the ECB would increase stimulus for the euro zone," said
Joe Manimbo, senior market analyst, at Western Union Business
Solutions in Washington.
But he added that the ECB could use the meeting and the
subsequent press briefing to undercut some of the euro's recent
strength, which doesn't 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 mid-morning New York trading, the euro was up 0.2 percent
at $1.1348, rebounding from a 10-day low hit on Monday. That put
pressure on the dollar index, which was down 0.1 percent at
94.807 .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 0.4 percent at C$1.2968.
Bank of Canada policymakers meet on Wednesday, with a large
majority of analysts polled by Reuters seeing no change in
interest rates. ID:nL3N12F4WJ