US recap: EUR/USD softens as dollar rises for eighth day
Oct 9 (Reuters) -The dollar index rose for an eighth day Wednesday as investor optimism propelled the S&P to a new record and lifted Treasury yields ahead of a U.S. consumer inflation report.
The minutes of the latest U.S. Federal Reserve meeting showed a "substantial majority" of officials supported an outsized half-point rate cut, but the initial move would not commit the central bank to any particular pace of rate reductions.
Dallas Federal Reserve Bank President Lorie Logan said on Wednesday that she wants smaller cuts ahead, given "still real" upside risks to inflation and "meaningful uncertainties" over the economic outlook.
Hurricane Milton could result in losses of up $100 billion for the global insurance industry, according to analysts.
The euro fell after European Central Bank policymaker Francois Villeroy de Galhau and Greek central bank chief Yannis Stournaras argued in favor of another interest rate cut next week.
By contrast, European Central Bank policymaker Gabriel Makhlouf said wage growth presents upside inflation risks while policymaker Peter Kazimir said he was not convinced about the need for an October interest rate cut.
The German government said it sees the economy contracting by 0.2% in 2024 versus 0.3% growth forecasted previously.
U.S. President Joe Biden and Israeli Prime Minister Benjamin Netanyahu were expected to discuss Israeli plans for a retaliatory strike on Iran Wednesday.
Saudi Crown Prince Mohammed bin Salman and Iran's foreign minister, Abbas Araqchi, discussed developments in the region.
Treasury yields were up 2-3 basis points across tenors, the 2s-10s curve was up marginally higher at +5.4bp.
The S&P 500 rose 0.55% fueled partly by gains in bank shares.
Oil prices fell 0.39% after a report of rising U.S. crude inventories.
Gold slid 0.53% amid greenback gains and higher yields.
Copper dropped 1.16% on uncertainty over China's plan to revive its economy.
Heading toward the close: EUR/USD -0.35%, USD/JPY +0.72%, GBP/USD -0.25%, AUD/USD -0.46%, DXY +0.33%, EUR/JPY +0.36%, GBP/JPY +0.47%, AUD/JPY +0.11%.
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Editing by Burton Frierson
Reporting by Robert Fullem
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