BUZZ-COMMENT-US recap:Dollar gains as S&P hits record
Jan 22 (Reuters) - The dollar index rose with Treasury yields on Wednesday as upbeat corporate earnings and President Donald Trump’s announcement of AI infrastructure investment lifted the S&P 500 to a record high.
Treasury yields trimmed gains after a solid 20-year auction.
The euro pulled back from a 3-week high and its 55-day moving average of 1.0456 after Europe Central Bank President Christine Lagarde and other policymakers made the case for more easing, solidifying expectations for a rate cut next week. Falling euro volatility and favorable moves in interest rate spreads helped limit losses, leaving 1.06 a target should upward momentum be revived. Rebalancing flows for month-end are seen leaning in the euro’s favor.
The Swiss franc dipped briefly after Swiss National Bank Chairman Martin Schlegel said there is still room to cut interest rates again and even take rates below 0%.
Cable slid 0.2% amid heightened expectations that the Bank of England will cut rates early next month. Flash U.K. PMIs on Friday will likely guide short-term direction.
Favorable risk sentiment sent the yen down against nearly all its G-10 peers with USD/JPY rising a one-week of 156.71 on EBS as Treasury yields firmed. The pair eyes a 21-day moving average at 157.12 on further gains.
Treasury yields were up 1 to 4 basis points as the curve steepened. The 2s-10s curve was up about 2 basis points to +31.1bp.
The S&P 500 rose 0.8% fueled by gains in tech shares.
Oil fell 0.45% on expectations for more U.S. supply
Gold rose 0.50% and is approaching a record near $2790/oz amid U.S. tariff uncertainties.
Copper edged up 0.94% as the dollar firmed.
Heading toward the close: EUR/USD -0.10%, USD/JPY +0.68%, GBP/USD -0.25%, AUD/USD +0.1%, DXY +0.10%, EUR/JPY +0.58%, GBP/JPY +0.43%, AUD/JPY +0.77%.
For more click on FXBUZ
(Editing by Burton Frierson
Reporting by Robert Fullem)
((robert.fullem@thomsonreuters.com;))
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