SINGAPORE, Nov 23 (Reuters) - Currency markets were
lulled by holidays in Japan and the United States on Thursday,
leaving the U.S. dollar revelling in its gains after data that
cast doubts over market projections for peak Fed rates.
    With markets shut in Japan and the United States for the
Thanksgiving holiday, currencies barely moved and cash U.S.
Treasuries weren't traded in Asia.
    The dollar index rose overnight, bouncing from a
2-1/2 month low, after economic data showed the number of
Americans filing new claims for unemployment benefits fell more
than expected last week. 
    At the same time, orders for long-lasting U.S. manufactured
goods fell more than expected in October, signalling an economy
cooling considerably after hot third-quarter growth.
    In another worrying indicator for the Federal Reserve, a
survey from the University of Michigan showed consumers this
month anticipate higher inflation both in the near and long
term, particularly inflation over the next five years.
    "The dollar has partially rebounded after recent
weakness...markets are reminded from the University of Michigan
survey that inflation expectations for the next 1 and 5 years
stay sticky, and that rates could stay higher for longer," said
Jeff Ng, head of Asia macro strategy at Sumitomo Mitsui Banking
Corporation. 
    The dollar's rebound comes after a three-week long spell of
weakness driven by evidence of a slowing economy and
disinflation, leading markets to price out any additional Fed
rate hikes. U.S. Treasuries had rallied too, with 10-year
Treasury yields down nearly half a percentage point
this month.
    Markets have dialled back expectations of Fed rate cuts in
2024, with futures now showing a 27% chance that the Fed cuts
its target rate at the March 2024 policy meeting, a likelihood
that increases to 40% when policymakers meet in May, according
to CME Group's FedWatch tool.
    The weakness in the dollar has buoyed the yen, along with
expectations the Bank of Japan may shift away from its
ultra-loose monetary policy next year. 
    After pulling back from the brink of 152 per dollar at the
start of last week, the yen hit a two-month high of 147.155 on
Tuesday. It was last traded at 149.33.
    The dollar index was just 0.03% lower at 103.84, with
the euro unchanged at $1.0887. The Australian dollar was
flat too at $0.654.
    The European Central Bank (ECB) releases minutes of its
October policy meeting later in the day. In recent days,
policymaker Mario Centeno has said he expected macroeconomic
conditions would lead to a reversal in the bank's recent cycle
of rate hikes in the near future. Governing Council member
Joachim Nagel said rates in the euro zone are close to their
peak in the current cycle or may have already reached it.
    The forward-looking flash November purchasing manager
indexes (PMIs) are also due out globally on Thursday and should
help investors assess recession risks and how quickly rate cuts
will begin. 
    The euro zone PMI is already below the 50 number, suggesting
economic activity is contracting. It is the same in Britain,
while the U.S. Oct manufacturing PMI contracted sharply.
    Sterling fell on Wednesday and UK's FTSE 100 fell
for the third straight session after UK finance minister Jeremy
Hunt unveiled a series of tax cuts and other measures to boost
growth in his autumn budget, but forecast a far more sluggish
economic outlook than previously expected.
    In cryptocurrency world, Binance chief Changpeng Zhao has
stepped down and pleaded guilty to breaking criminal U.S.
anti-money laundering laws as part of a $4 billion settlement
resolving a years-long investigation into the world's largest
crypto exchange. Bitcoin rose nearly 5% on Wednesday
and is last at $37,450. 
    
  Currency bid prices at 0043 GMT
 Description   RIC         Last      U.S. Close  Pct     YTD Pct     High Bid    Low Bid
                                      Previous   Change   Change                 
                                      Session                                    
 Euro/Dollar               $1.0889   $1.0888     +0.02%  +1.63%      +1.0890     +1.0884
 Dollar/Yen                149.3700  149.5800    -0.14%  +13.82%     +149.5250   +149.3700
 Euro/Yen                                                                      
 Dollar/Swiss              0.8837    0.8839      -0.01%  -4.42%      +0.8841     +0.8838
 Sterling/Dol              1.2491    1.2495      -0.03%  +3.29%      +1.2494     +1.2490
 lar                                                                             
 Dollar/Canad              1.3690    1.3688      +0.03%  +1.05%      +1.3692     +1.3691
 ian                                                                             
 Aussie/Dolla              0.6544    0.6544      +0.05%  -3.95%      +0.6548     +0.6540
 r                                                                               
 NZ                        0.6024    0.6021      +0.07%  -5.10%      +0.6027     +0.6020
 Dollar/Dolla                                                                    
 r                                                                               
                                                                                 
 
    

    
 (Reporting by Vidya Ranganathan; Editing by Lincoln Feast.)