US recap: EUR/USD edges higher, helped by US data
Dec 4 (Reuters) -The dollar slid with Treasury yields on Wednesday amid additional signs the U.S. jobs market is softening.
The ADP payrolls estimate and ISM services index for November were below market forecasts. The data came ahead of a speech by Fed Chair Jerome Powell, who said that the U.S. economy is in good shape and that there is no reason that can't continue.
Powell said that the Fed was on a path to more neutral rates over time. However, he said downside risks are less than thought and that the U.S. central bank can afford to be cautious in finding neutral.
U.S. Treasury yields pared losses slightly while Powell was speaking.
Euro zone economic growth could be weaker in the months ahead and downside risks dominate the medium term outlook, European Central Bank President Christine Lagarde said.
Lagarde's growth concern was echoed by other ECB policymakers including Gabriel Makhlouf and Olli Rehn.
It is "conceivable" that the European Central Bank will cut interest rates by 25 basis points at its next rate-setting meeting this month but not more, ECB policymaker Robert Holzmann said in a newspaper interview.
French lawmakers may oust the government with a no-confidence motion on Wednesday.
Bank of England Governor Andrew Bailey reiterated in an interview published on Wednesday that gradual cuts in interest rates are likely over the next year.
Treasury yields were down 3 to 5 basis points as the curve steepened. The 2s-10s curve was up about 2 basis points to +6.4bp.
The S&P 500 rose 0.26% fueled by tech shares.
Oil fell 1.64% even as U.S. crude stocks fell by more than expected.
Gold rose 0.25% while copper eased 0.23%.
Heading toward the close: EUR/USD +0.18%, USD/JPY +0.42%, GBP/USD +0.26%, AUD/USD -0.72%, DXY -0.15%, EUR/JPY +0.53%, GBP/JPY +0.62%, AUD/JPY -0.4%.
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Editing by Burton Frierson
Reporting by Robert Fullem
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