US recap: EUR/USD steadies as Ukraine fears subside
Nov 19 (Reuters) -The dollar was mixed on Tuesday as safe-haven flows abated after Russian Foreign Minister Sergei Lavrov said Russia will do everything possible to prevent the breakout of nuclear war.
Markets had been put on edge earlier after Russian President Vladimir Putin lowered the threshold for a nuclear strike in response to a broader range of conventional attacks, and Moscow said Ukraine had struck deep inside Russia with U.S.-made ATACMS missiles.
On the macro front, it remains uncertain how far interest rates can fall, though the initial reductions made by the U.S. central bank are a vote of confidence that inflation is returning to its 2% target, Kansas City Fed President Jeffrey Schmid said.
US consumer shares received a boost after Walmart raised its annual sales and profit forecast.
Top Bank of England officials said the possible impacts on inflation from tax increases represented the biggest doubt around their intention to cut interest rates gradually.
BOE Governor Andrew Bailey said a gradual approach to removing monetary policy restraint will help policymakers observe how this plays out. Pound traders will eye inflation data on Wednesday.
Iran has offered not to expand its stock of uranium enriched to up to 60% purity, near the roughly 90% of weapons grade, and made preparations to do that, the U.N. nuclear watchdog said.
The Canadian dollar strengthened after a hotter-than-expected domestic inflation.
Treasury yields were down 1 to 4 basis points as the curve flattened. The 2s-10s curve was down about 3 basis points to +10.7bp.
The S&P 500 rose 0.50%, fueled partly by tech share gains ahead of Nvidia earnings on Wednesday.
Oil prices were marginally lower after Norway's Johan Sverdrup oilfield restarted production and reports Iran was offering to cap its uranium stockpile.
Gold rose 0.69% amid concerns about the war in Ukraine
escalating.
Copper was up 0.49% as the dollar eased and after Peru output edged down in September.
Heading toward the close: EUR/USD -0.08%, USD/JPY -0.04%, GBP/USD +0.02%, AUD/USD +0.32%, DXY -0.03%, EUR/JPY -0.13%, GBP/JPY -0.06%, AUD/JPY +0.28%.
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Editing by Burton Frierson
Reporting by Robert Fullem
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