BUZZ-COMMENT-US recap: Dollar recovers from Monday's slide

Jan 28 (Reuters) - The U.S. dollar rose with Treasury yields on Tuesday as US tech shares rebounded from Monday’s slide, fueled by gains in Apple, while Trump tariff rhetoric underpinned the greenback even as the near-term focus shifted to the outcome of a two-day Fed policy meeting and tech earnings on Wednesday.

The U.S central bank is expected to leave its policy-rate corridor steady at 4.25-4.50%. Data on Tuesday showed a resilient U.S. economy in Q4 with new orders for key capital goods rising in December and house prices advancing through November.

EUR/USD fell 0.6% to test its 55-day moving average at 1.0440 amid a mix of speculative and corporate sales as month-end approaches. Investors expect the European Central Bank to cut rates by 25 basis points on Thursday.

GBP/USD dropped 0.5% though flows were muted ahead of the Fed policy decision. The 21-day moving average of 1.2360 offers near-term support. The Bank of England launched a new financial stability tool that insurers and pension funds can use during periods of turbulence in Britain's government bond market.

USD/JPY drifted upwards amid firmer Treasury yields and gains in U.S. tech shares. A descending trendline from the January high and the 200-hour moving average offers resistance just beneath 156. A firm breach would point to a possible test of 158 price congestion.

Options show heightened risks for the Canadian dollar with the Bank of Canada expected to reduce its policy rate on Wednesday and U.S. tariffs potentially looming. Australia will eye Q4 CPI.
Treasury yields were up 2 to 3 basis points. The 2s-10s curve was up about 1 basis point at +34.1bp.

The S&P 500 rose 0.74% fueled mostly by tech share gains.

Oil eased 0.1%. Saudi Arabia's energy minister and several of his OPEC+ counterparts have held talks following U.S. President Donald Trump's call for lower oil prices and ahead of a meeting next week of OPEC+ oil-producing countries, according to official statements and sources.

Gold advanced 0.8%, rebounding from Monday's drop

Copper edged up 0.4% with the Comex premium rising after Trump threatened to impose tariffs on imports of the metal.

Heading toward the close: EUR/USD -0.63%, USD/JPY +0.72%, GBP/USD -0.59%, AUD/USD -0.72%, DXY +0.58%, EUR/JPY +0.12%, GBP/JPY +0.20%, AUD/JPY -0.02%.

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