FOREX-Dollar dips as investors await Yellen's Jackson Hole speech

(Updates prices, adds comment, U.S (Other OTC: UBGXF - news) . data changes byline, dateline; previous LONDON)

* Policymakers meet in Wyoming retreat later on Thursday

* Dollar/yen could rally if Yellen sounds hawkish

* U.S. durables rise, weekly jobless claims fall

By Gertrude Chavez-Dreyfuss

NEW YORK, Aug 25 (Reuters) - The dollar slipped on Thursday as some investors squared positions before the annual global central bankers' gathering in Jackson Hole, Wyoming, where Federal Reserve Chair Janet Yellen may offer new guidance on U.S. monetary policy.

Recent upbeat statements on the U.S. economy by Fed officials including Vice Chairman Stanley Fischer and New York Fed President William Dudley have prompted investors to raise bets interest rates will increase sooner rather than later. Some believe Yellen could echo their signals.

U.S. data on Thursday added to the bullish outlook on interest rates, with a 1.6 percent rise in U.S. durable goods orders for July and a fall in initial weekly jobless claims.

After the release of the U.S. data, futures markets were indicating a 24 percent chance the Fed will hike rates at its policy meeting next month and a roughly 57 percent chance of an increase in December, according to the CME Group (Kuala Lumpur: 7018.KL - news) 's FedWatch.

Some analysts, however, believe Yellen could stick to her dovish stance. U.S. data, while solid of late, are not strong enough to warrant a rate increase this year, they said.

"Our thinking as a firm is that the Fed will not raise rates until next year," said John Doyle, director of markets at Tempus Consulting in Washington. "The U.S. economy is doing better than most, but it's not on fire. Inflation is still super low. So the Fed does not really need to raise rates right now."

In mid-morning trading, the euro rose 0.3 percent against the dollar to $1.1293. The euro rose despite a weak German IFO survey showing German business morale deteriorated sharply in August as Brexit shock weighed on sentiment among executives.

The dollar was flat against the yen at 100.49 yen, having dipped below 100 in recent days. The pair has traded in a narrow 99.55-102.83 band this month, but some traders said it could stage a rally if Yellen laid the ground for a rate hike.

"Dudley's hawkish comments have come as a surprise and if Yellen says U.S. data has been good enough to continue tightening policy, then we could see dollar/yen rally towards the 102 yen mark," said Richard Falkenhall, currency strategist at SEB (LSE: 0MGS.L - news) .

The yen could also come under pressure on growing expectations the Bank of Japan will take additional stimulus steps at its next meeting in September. (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Anirban Nag in London; Editing by Meredith Mazzilli)