US recap: EUR/USD bounces but market awaits PCE
June 27 (Reuters) -The dollar retreated modestly against most majors on Thursday as U.S. data failed to inspire the U.S. currency to extend recent gains while investors were also biding their time ahead of a highly anticipated inflation report on Friday.
Initial jobless claims fell more than expected, even with an upward revision factored in, but continued claims exceeded forecasts, even with a downward revision to the previous week.
Durable goods orders grew slightly in May, confounding forecasts for a decline, but closely watched core orders contracted unexpectedly. Final Q1 U.S. GDP was revised slightly higher.
U.S. Treasury yields were 2-3bp lower with spreads versus Bunds, gilts and JGBs moving against the dollar.
U.S. yields built further downward momentum after a $44bln auction of seven-year notes produced solid results, stopping through 0.3bp with above-average non-dealer bidding, according to BMO Capital Markets.
The S&P 500 traded 0.05% lower in the New York afternoon, with upcoming the PCE report front-of-mind for the market.
WTI gained 1.05% on worries about supply disruption that were stoked by mounting geopolitical tensions in the Middle East and Europe, while an unexpected uptick in U.S. crude and gasoline stockpiles capped gains.
Copper eased 0.57%, languishing near its weakest in more than two months on Thursday as more bullish positions were scrapped, inventories kept rising and demand remained lacklustre in top metals consumer China.
Gold rose 1.12% from an over two-week low hit in the previous session as the dollar softened, with the market spotlight on the PCE report.
Heading toward the close: EUR/USD +0.24%, USD/JPY -0.05%, GBP/USD +0.18%, AUD/USD -0.07%.
For more click on FXBUZ
(by Burton Frierson)
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