BUZZ-COMMENT-US recap: Dollar rattled as tariff deadline looms

Jan 31 (Reuters) - The dollar index jumped higher on Friday after the White House affirmed a Feb. 1 deadline for new tariffs against Canada and Mexico and called a report of a 28-day delay before implementation false.

White House spokeswoman Karoline Leavitt declined to say whether there will be exemptions to the tariffs.

Prior to the tariff headlines, the greenback was lower on the session on a report implementation would be pushed back to March 1 and a process will be laid out for specific exemptions.

Earlier, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum pushed back against U.S. tariff threats, with Trudeau saying the country will respond immediately with a series of forceful countermeasures.

While the bulk of dollar’s swings came after the reports, earlier weakness was linked to month-end portfolio rebalancing, dovish Fed rhetoric and position-squaring before the weekend.

Chicago Federal Reserve President Austan Goolsbee said Friday’s PCE inflation data was a bit better than expected while Federal Reserve governor Michelle Bowman said declining inflation should allow for further rate cuts this year. The PCE price index matched expectations, rising 2.6% annually in December.

Before slipping, EUR/USD was up in the New York morning session, largely dismissing European Central Bank policymakers comments about further policy easing and a soft German inflation print for January.

Treasury yields were up about 3 basis points across the curve. The 2s-10s curve was steady at +31.4bp.

The S&P 500 pared earlier gains, trading about 0.1% higher after the White House statement.

Gold was 0.2% higher, having retreated from the session's earlier record high, while copper fell 0.7%

Oil rose 0.7%, paring a weekly loss.

Heading toward the close: EUR/USD -0.18%, USD/JPY +0.54%, GBP/USD -0.14%, AUD/USD +0.14%, DXY +0.56%, EUR/JPY +0.32%, GBP/JPY +0.32%, AUD/JPY +0.64%.

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