BUZZ-COMMENT-US recap: Dollar rises with shares in run up to Trump presidency
Jan 17 (Reuters) - The dollar rose with U.S. share prices on Friday, fueled by optimism about U.S. housing data and prospect of better U.S.-China relations.
U.S. President-elect Donald Trump and Chinese President Xi Jinping discussed issues including TikTok, trade and Taiwan in a phone call. Trump, who will be inaugurated on Monday, called it "a very good one" for both nations.
According to China media, Xi said he and Trump hoped for a positive start to U.S.-China relations.
Also on Friday, the U.S. Supreme Court upheld a law banning TikTok.
Treasury yields firmed following inflation warnings from Cleveland Fed President Beth Hammack and stronger-than-expected housing starts and manufacturing output for December.
EUR/USD spiked above its 5-DMA to a session high of 1.0331 though gave back all its gains after options expired and as Treasury yields rose.
European Central Bank board member Frank Elderson was quoted as saying that the bank is not yet done lowering interest rates, but the timing and size of any future policy easing is not yet certain.
The offshore yuan firmed and EUR/CHF rallied 0.3% as the risk tone improved.
Cable rallied to as high as 1.2227 though ended 0.5% lower as an earlier soft UK retail sales report underpinned expectations of future Bank of England rate cuts.
USD/JPY rose 0.7%, guided higher by firmer Treasury yields and an unraveling of haven trades as shares advance. Strong support is seen near 155 where options expiries are stationed though pair needs to top 158 to see longs build.
Treasury yields were up as much as 3 basis points as the curve flattened. The 2s-10s curve fell about 3 basis points to +33.9bp.
The S&P 500 surged 1.2%, fueled by tech and consumer shares.
Oil slipped 0.6% though was set for a fourth weekly gain.
Gold eased 0.2% as the dollar advanced and copper slid 1.8%.
Heading toward the close: EUR/USD -0.19%, USD/JPY +0.68%, GBP/USD -0.51%, AUD/USD -0.20%, DXY +0.30%, EUR/JPY +0.51%, GBP/JPY +0.14%, AUD/JPY +0.50%.
For more click on FXBUZ
(Editing by Burton Frierson
Reporting by Robert Fullem)
((robert.fullem@thomsonreuters.com;))
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