US recap: EUR/USD orbits 1.08 in mixed market
Oct 29 (Reuters) -The dollar was mixed on Tuesday as U.S. share gains and higher Treasury 10-year yields weighed on other haven currencies.
U.S. data showed a surge in consumer confidence, a notably wider trade deficit, a softening labor market and cooling home price growth.
The Conference Board's consumer confidence index posted its strongest monthly gain in 3-1/2 years on hopes share prices would rise next year.
Kamala Harris' lead over Donald Trump in the upcoming US presidential election fell to a single percentage point, according to a Reuters/Ipsos poll published on Tuesday
The euro dipped briefly below 1.08 once EUR 3.7b of options rolled off at the level and as 10-year yield spreads widened marginally in greenback's favor.
China is considering approving next week the issuance of over 10 trillion yuan ($1.4 trillion) in extra debt in the next few years to revive its fragile economy.
The pound rose and volatility edged up as traders awaited the details of the UK budget to be released on Wednesday. Ahead of the release, UK Finance minister Rachel Reeves announced that the minimum wage for most adults will increase by 6.7% from April next year.
Oil prices dipped on a report that Israeli Prime Minister Benjamin Netanyahu will hold a meeting for a diplomatic solution to the war in Lebanon.
Commodity currencies lagged other peers with the Australian dollar hitting a 2-1/2-month lows ahead of the country’s quarterly inflation data while the Canadian dollar was on pace for its lowest close in more than four years.
Treasury yields turned mixed after a strong 7-year auction. The 2s-10s curve was up about 2 basis points to +16.5bp. The options market was bracing for the biggest post-election swings in U.S. Treasury yields in more than 30 years.
The S&P 500 rose 0.27% as traders awaited tech earnings reports.
Oil eased marginally following the report of a possible diplomatic solution to the Lebanon war.
Gold rose 1.1%, hitting a record high amid uncertainties surrounding the U.S. presidential election and the Middle East conflict.
Copper slipped 0.12% as traders awaited a key meeting on China stimulus measures next week.
Heading toward the close: EUR/USD +0.05%, USD/JPY +0.06%, GBP/USD +0.25%, AUD/USD -0.39%, DXY -0.02%, EUR/JPY +0.13%, GBP/JPY +0.36%, AUD/JPY -0.27%.
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Editing by Burton Frierson
Reporting by Robert Fullem
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