US recap: EUR/USD gains on month-end Trump trade reprieve
Nov 27 (Reuters) -The dollar index tumbled on Wednesday, extending its recent retreat as Trump trades appeared to come in for a pruning in forex head of a long U.S. holiday weekend and month end.
The pre-Thanksgiving shakeout arrived as many in the market will also be considering the December slow-down that usually hits liquidity.
A dump of U.S. data before the holiday shutdown produced mixed results, with October PCE inflation gauges matching expectations of firmer year-on-year price growth, pending home sales and initial jobless claims outperforming forecasts, and durable goods orders missing estimates.
Second-estimate Q3 U.S. GDP also came in line with expectations.
U.S. Treasury yields fell 5-7bp across maturities, with the 2s-10s curve flattening by 2 bp.
The S&P 500 fell 0.4% by New York afternoon trade while the Nasdaq led declines on Wall Street as technology stocks slumped and investors focused on the Fed's next move following the PCE inflation reading.
WTI crude fell 0.73%, still feeling the weight of easing supply concerns from the ceasefire deal between Israel and Hezbollah.
Copper gained 0.64%, with support from the weaker dollar and revived bets that top metals consumer China would launch more stimulus to counter risks of U.S. tariffs and to support its economy.
Gold firmed 0.26% rebounding from an over one-week low hit in the previous session, on a weaker dollar, but trimmed earlier gains after the PCE data showed stalled inflation progress, hinting that the Fed Reserve might be cautious on further rate cuts.
Heading toward the close: EUR/USD +0.81%, USD/JPY -1.54%, GBP/USD +0.91%, AUD/USD +0.39%, DXY -0.97%, EUR/JPY -0.75%, GBP/JPY -0.69%, AUD/JPY -1.17%
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(Burton Frierson)
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