US recap: EUR/USD, yen weighed down as yields boost dollar
June 26 (Reuters) -The dollar rose against most other majors on Wednesday -- including a 38-year peak versus the yen -- tracking Treasury yields higher as the market remained a holding pattern ahead of PCE data at the end of the week.
The day's lower-tier U.S. data showed new home sales came in below forecast for May but an upward revision to the previous month made up for the shortfall.
Friday's PCE inflation figures are likely to outweigh other economic reports that come before it, though initial jobless claims will draw close scrutiny on Thursday as traders watch for signs of more softening in the labor market.
U.S. Treasury yields rose 5-7bp across the curve. The day's five-year notes auction produced solid results, stopping through 0.6bp with above-average non-dealer bidding, according to BMO Capital Markets.
Ten-year spreads of Bund, gilt and JGB yields versus Treasuries were generally moving in the dollar's favor.
In New York afternoon trade, the S&P 500 was down 0.05%, with technology stocks attempting to find a floor after a recent selloff, while investors awaited the PCE release to better anticipate the path of monetary policy.
WTI rose 0.67% after U.S. crude stocks posted their third unexpected weekly rise in four weeks, feeding worries about demand in the biggest oil market in the world.
Copper edged up 0.19%, recovering after hitting the lowest level in more than two months as it came under pressure from the stronger dollar, concerns about current demand in top metals consumer China and rising stocks.
Gold eased 0.74%, also hurt by the stronger dollar and rising Treasury yields.
Heading toward the close: EUR/USD -0.27%, USD/JPY +0.62%, GBP/USD -0.44%, AUD/USD +0.11%.
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Editing by Burton Frierson
Paul Spirgel is a Reuters market analyst. The views expressed are his own.
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