US recap: EUR/USD holds firm as market focus turns to Fed
Corrects signoff
Dec 16 (Reuters) -The dollar index eased on Monday as market participants awaited a Fed meeting later in the week and also prepared for the year-end slowdown in trading activity.
S&P Global PMI data painted a disappointing picture of the U.S. manufacturing sector, which unexpectedly fell further into contraction, but services recorded an acceleration toward robust growth, outperforming forecasts and lifting the composite reading on business activity.
Sterling rallied after data within the UK PMI report showed prices charged by companies rose, which could be a cause for concern for Bank of England policymakers, who are watching for how employers respond to the higher social security contributions that they must pay.
U.S. Treasury yields edged marginally higher across maturities with the 2s-10s curve firming slightly.
The S&P 500 gained 0.53%, with investors focused on how the Fed will frame its outlook on Wednesday, when investors expect it to deliver a rate cut along with signals of a pause in easing.
WTI crude fell 0.8%, pulling back from three-week highs on weakness in consumer spending in China and as investors paused buying ahead of the Fed.
Gold was 0.22% higher, supported by ongoing geopolitical concerns and the softer dollar.
Copper eased 0.19%.
Heading toward the close: EUR/USD +0.03%, USD/JPY +0.26%, GBP/USD +0.6%, AUD/USD +0.06%, DXY -0.13%, EUR/JPY +0.34%, GBP/JPY +0.8%, AUD/JPY +0.4%.
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(Burton Frierson)
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