BUZZ-COMMENT-US recap: EUR/USD firms as dovish Waller helps subdue dollar

Jan 16 (Reuters) - The dollar index fell for third day on Thursday as Treasury yields eased following mixed U.S. data and dovish comments by Federal Reserve Governor Christopher.

Inflation is likely to continue to ease and possibly allow the U.S. central bank to cut interest rates sooner and faster than expected, Waller said.

Retail sales rose a below-forecast 0.4% in December and weekly jobless claims edged up.

President-elect Donald Trump's pick for U.S. Treasury Secretary, Scott Bessent, said tariffs can remediate unfair trade practices, China is the most imbalanced country in world history and that the Fed should stay independent.

EUR/USD bounded higher after the Waller comments, reaching a high of 1.0313 after the London close as short positions were covered. Upward momentum died soon afterwards with a number of large options set to roll off Friday.

The European Central Bank needed to cut interest rates cautiously and gradually but further policy easing was likely coming, policymakers concluded last month, according to the accounts of their Dec 11-12 meeting published on Thursday.

The yen rose broadly and reached a near one-month high of 155.11 against the dollar as yields and oil retreated. Expectations of a BOJ hike on Jan. 24 is underpinning the yen.

The pound edged down after data showed U.K. GDP rose less than expected in October.

Canadian Energy and Natural Resources Minister Jonathan Wilkinson said Canada is preparing a list of potential U.S. retaliatory tariffs and some of those could be on critical minerals, helping lift volatilities to multi-month highs.

Bank of Canada deputy governor Toni Gravelle said the BOC will soon announce the end of its quantitative tightening.

Treasury yields were down 3 to 5 basis points across tenors. The 2s-10s curve fell about 1 basis point to +37.2bp.

The S&P 500 was little changed as tech shares fell and utilities rose.

WTI oil slid 1.4% on U.S. supply prospects and the hope Red Sea shipping attacks will cease.

Gold rose 0.86% as Treasury yields eased.

Copper rose 1.1%, touching a five-week high on renewed hope of additional China stimulus.

Heading toward the close: EUR/USD +0.10%, USD/JPY -0.79%, GBP/USD -0.01%, AUD/USD -0.11%, DXY -0.12%, EUR/JPY -0.67%, GBP/JPY -0.77%, AUD/JPY -0.90%.

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(Editing by Burton Frierson
Reporting by Robert Fullem)

((robert.fullem@thomsonreuters.com;))