BUZZ-COMMENT-US recap: EUR/USD eases in mixed market, pound falls after BoE

Feb 6 (Reuters) - The dollar traded mixed on Thursday with sterling posting a loss after a widely expected quarter-point rate cut from the Bank of England rate cut was accompanied by dovish messaging, while the yen rose broadly, reaching and eight-week high against the greenback.

The U.S. market focus now turns to Friday's U.S. payrolls and revisions.

Chicago Fed President Austan Goolsbee said full-employment economy with solid growth and falling inflation will let the U.S. Federal Reserve continue cutting interest rates, though uncertainty about the impact of tariffs and other policy changes argues for a slower approach.

EUR/USD held within a 1.0353 to 1.0405 range, constrained by gamma linked to very large 1.0320-25 and 1.0370-80 expiries. European Central Bank board member Piero Cipollone said interest rates have room to fall further as inflation moderates, warning that the U.S. administration's trade war with China could have a detrimental impact on the 20-member euro zone.

GBP/USD fell to a low of 1.2361, hurt by news that two Bank of England policymakers had voted for an even larger cut. It subsequently pared losses amid firmer gilt yields after BoE Governor Andrew Bailey called for "a gradual and careful" approach to further easing in light of risks to UK economy and global developments.

Nearby support is stationed at its 21-DMA of 1.2354 as cable looks to continue its ascent from the 1.21 year-to-date low set on Jan. 13. Gains are currently being slowed by price congestion near 1.2550.

USD/JPY was pressured for most of the session with sellers emerging after an uptick in U.S. weekly claims data and below-forecast Q4 wage costs. The pair slipped below its weekly cloud top at 151.81 and triggerd stop loss sales below 151.50.

Crosses also fell though rising share prices, firmer yields and falling volatility helped to limit the damage. A backdrop of expected Bank of Japan tightening continues to buoy the yen against its G10 peers.

Treasury yields edged up 1 to 2 basis points. The 2s-10s curve was down about 1 basis points at +22.5bp.

The S&P 500 rose 0.23% in a calm market before U.S. jobs data.

Oil fell 0.5% as a pledge from U.S. President Donald Trump to boost U.S. production reignited oversupply concerns.

Gold eased 0.5%, pulling back from a record high during the previous session.

Heading toward the close: EUR/USD -0.18%, USD/JPY -0.69%, GBP/USD -0.48%, AUD/USD +0.04%, =USD flat, EUR/JPY -0.86%, GBP/JPY -1.18%, AUD/JPY -0.72%.


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