SINGAPORE, Oct 18 (Reuters) - The dollar headed for a

third weekly gain in a row on Friday, helped by a dovish

European Central Bank and strong U.S. data that is pushing out

expectations for how fast U.S. rates can fall, particularly if

Donald Trump wins the presidency.

The euro is down almost 1% for the week so far,

has fallen through its 200-day moving average, and at $1.0828 in

early Asia trade is parked near a 2-1/2 month low.

On a rolling basis, the dollar's 3.1% three-week gain on the

euro is the sharpest rally since the middle of 2022, and it has

forged to the strong side of 150 yen for the first time since

early August. It last bought 150.24 yen.

On Thursday, data showed U.S. retail sales growth was higher

than expected and the ECB cut interest rates by 25 basis points.

Four sources close to the matter told Reuters the ECB was

likely to cut again in December unless economic data suggests

otherwise.

Meanwhile, markets have been disappointed at the lack of

detail offered by Chinese authorities on plans to revive the

slowing economy, and the yuan is headed for its

largest weekly fall in more than 13 months.

"All of that has played in to a stronger dollar," said Jason

Wong, senior strategist at BNZ in Wellington.

"There's also been a Trump trade going on in the

background," he said, with the dollar tracking Trump's newfound

lead in election prediction markets, since his tariff and tax

policies are seen as likely to keep U.S. interest rates high.

Trump's prospects have also set bitcoin rallying

since his administration is seen as taking a softer line on

cryptocurrency regulation. It was last at $67,335, up 13% since

Oct. 10. The U.S. goes to the polls on Nov. 5.

Later on Friday, Chinese growth and activity data is due and

is likely to show a slowdown that puts this year's economic

growth target of around 5% at risk.

The Australian dollar, sensitive to China's outlook

owing to commodity exports, steadied at $0.6697 on Friday for a

fall of around 0.8% on the week.

It had received a boost on Thursday when

stronger-than-expected jobs data reduced bets on interest rates

cuts. The New Zealand dollar is also down 0.8% on the

week and was a fraction lower at $0.6055 early in the Asia

session.

Israel said it had killed Hamas leader Yahya Sinwar in Gaza,

a mastermind of the Oct. 7, 2023, attack that triggered war.

Israel's shekel rose and touched a two-week high

after the news, though Israeli Prime Minister Benjamin Netanyahu

said fighting would go on and broader markets had little

immediate reaction.

Sterling regained the $1.30 level overnight but is

also headed for a weekly loss after a bigger-than-expected drop

in British inflation raised bets the Bank of England might cut

interest rates twice before the end of the year.

British retail sales and U.S. housing starts data are due

later on Friday, as are plans from Japan's largest union group,

Rengo, for the year's wage negotiations. Data showed Japan's

core consumer prices were up 2.4% year-on-year in September, a

bit higher than expected.

The U.S. dollar index hit a 2-1/2 month high on

Thursday at 103.76 and is up 0.8% this week.

China's yuan hovered at 7.1370 in offshore trade,

ahead of the onshore open.