US recap: Dollar climbs to one-year high
AUD/USD-Bulls survive a scare but aren't out of the woods
Yen may get another lift from Japan data Friday
Nov 21 (Reuters) -The dollar index rose to a one-year high on Thursday following upbeat U.S. data and Fed comments, while concerns about growth in the euro zone and the impact of the Ukraine-Russia conflict weighed on the euro.
Treasury 2-year yields edged up after an increase in U.S. existing home sales and drop in weekly jobless claims to a seven-month low. Focus turns to PMIs on Friday.
Chicago Federal Reserve President Austan Goolsbee reiterated his support for further interest rate cuts and his openness to doing them more slowly.
The U.S. is more vulnerable to inflationary shocks than in the past, Federal Reserve Bank of Richmond President Tom Barkin said in an interview with the Financial Times.
Liquidity conditions in short-term markets showed few signs of pressure as of the middle of November, the Federal Reserve Bank of New York said.
The euro slid below 1.05 to a near two-year low amid broad dollar buying before the London close and after a series of large options expired.
Volkswagen's union said it was gearing up for strikes across German factories from Dec. 1 and Handelsblatt reported that Mercedes plans to cut costs by several billion euros per year.
Global economic output would suffer a "sizeable" loss if trade became more fragmented and an immediate boost to inflation would only fade over a few years, the European Central Bank's chief economist, Philip Lane, said.
Russian President Vladimir Putin said Russia had launched a hypersonic medium-range ballistic missile in retaliation and that the West was escalating the conflict in Ukraine.
The United States briefed Ukraine and close allies in recent days to help them prepare for the possible use of an experimental intermediate-range ballistic missile used to attack the Ukrainian city of Dnipro, a U.S. official said.
The yen rose against all its G10 peers amid haven-related demand and heightened expectations the Bank of Japan will hike in December. Japan eyes CPI and PMI data on Friday.
Treasury yields rose 2 to 3 basis points across tenors. The 2s-10s curve fell 1 basis point to +8.7bp.
The S&P 500 rose 0.67% led by gains in financials.
Oil rose over 1% on supply worries from theescalating Russia-Ukraine war.
Gold gained 0.83% amid haven-related buying while copper fell 0.7%.
Heading toward the close: EUR/USD -0.57%, USD/JPY -0.54%, GBP/USD -0.36%, AUD/USD +0.15%, DXY +0.28%, EUR/JPY -1.10%, GBP/JPY -0.95%, AUD/JPY -0.39%.
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Editing by Burton Frierson
Reporting by Robert Fullem
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