US recap: EUR/USD flat as Powell, JOLTS leave dollar rangebound
July 2 (Reuters) -The dollar traded near flat against most majors on Tuesday, with mixed signals coming from the Fed and jobs data, while the market also looked ahead to the July 4 holiday followed by a non-farm payrolls report on Friday.
JOLTS job openings data came in above expectations -- though with a downward revision -- while Fed Chair Jerome Powell sounded a slightly dovish tone, saying that the U.S. disinflation trend shows signs of resuming.
However, Powell also delivered a familiar cautionary note, saying that policymakers need more data before cutting interest rates to verify that recent weaker inflation readings provide an accurate picture of the economy.
That left the market watching data, especially the upcoming labor market report, especially in light of Powell's comment that an unexpected weakening in the labor market could cause the Fed to react.
Chicago Fed President Austan Goolsbee said he sees some "warning signs" of weakening in the economy, adding that the U.S. central bank's goal is to get inflation down without stressing the labor market.
U.S. Treasury yields took a breather from their recent rise, retreating 3-4bp.
The S&P 500 rose 0.44%, boosted by gains in Tesla and megacap stocks.
WTI eased 0.56% as fears of supply disruptions caused by Hurricane Beryl continued to fade.
Copper edged 0.16% higher, helped by fund buying, but worries about demand prospects in top consumer China and an inventory uptrend in warehouses registered with London Metal Exchange (LME) were capping gains.
Gold eased 0.19%.
Heading toward the close: EUR/USD +0.00%, USD/JPY -0.01%, GBP/USD +0.23%, AUD/USD +0.08%.
For more click on FXBUZ
(Burton Frierson)
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