US recap: EUR/USD extends slide as dollar shows resilience
Corrects typo in signoff
Aug 29 (Reuters) -The dollar rose again on Thursday, extending its rebound from recent one-year lows, after above-forecast Q2 GDP and slightly lower than expected jobless claims forced the market to question the extremes of recent dovish Fed views.
Second-estimate Q2 GDP growth came in at 3.0% versus 2.8% expected while initial jobless claims were 231k in the latest week, below the 232k forecast, though the previous week's result was revised 1k higher to 233k.
The reports followed downward surprises in German CPI and HICP and may increase the spotlight on Friday's U.S. PCE report as well as next week's non-farm payrolls release -- especially after Fed Chair Jerome Powell put the focus on the labor market in his Jackson Hole speech.
U.S. Treasury yields rose 2-3bp across maturities and the 2s-10s curve was little changed around -2.86bp.
The S&P 500 was down 0.14% by New York afternoon after giving up earlier gains, while artificial intelligence chipmaker Nvidia slipped after its largely in-line forecast failed to impress investors.
WTI rallied 1.85% as supply disruptions in Libya and plans to lower output in Iraq raised concerns of a tightening market.
Copper was close to flat, recovering from earlier losses that had come on the back of rising inventories, lacklustre demand in China and a strong dollar.
Gold gained 0.75%, keeping it close to recent highs.
Heading toward the close: EUR/USD -0.37%, USD/JPY +0.13%, GBP/USD -0.17%, AUD/USD +0.22%, EUR/JPY -0.24%, GBP/JPY +0.17%, AUD/JPY +0.48%, DXY +0.25%.
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Editing by Burton Frierson
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