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(Bloomberg) -- The dollar rose slightly, gaining against most G-10 and emerging-market currencies, as short-term U.S. Treasury yields climbed ahead of a heavy U.S. economic data calendar beginning Tuesday.
- The Bloomberg Dollar Spot Index rose 0.2 percent, earlier climbing as much as 0.3 percent. The greenback advanced against seven of its G-10 peers, gaining the most against the pound. While investors continue to monitor tax reform discussions in the U.S., focus Tuesday should shift to a full slate of central bank speakers Of special note is a panel featuring Federal Reserve Chair Janet Yellen, European Central Bank President Mario Draghi, Bank of England Governor Mark Carney and Bank of Japan head Haruhiko Kuroda
- U.S. PPI data is also due Tuesday, though traders might pay more attention to CPI on Wednesday
- The pound was beset by concerns over a possible challenge to Prime Minister May’s leadership. USD/JPY reversed losses as most UST yields rose, while the euro was supported as EGBs relinquished early gains
- GBP was down 0.6% and trading ~1.3114, paring some overnight losses seen after a report that 40 Conservative MPs were ready to sign a letter of no-confidence aimed at May
- U.S. stocks bucked a decline in global equities that earlier weighed on broader risk sentiment, with the S&P 500 and DJIA posting modest gains; Treasuries pared or reversed gains that sent the yield on the 10-year as low as 2.37%
- EUR/USD was trading ~1.1668 after rising as high as 1.1675, stalling near its Friday peak at 1.1678. The pair gained lift as EUR/GBP rose to 0.8923, its highest in 10 days. EUR/USD remains trapped by gamma-related bids and offers at 1.1600 and 1.1700 respectively, traders said
- USD/JPY was trading ~113.56, gaining less than 0.1 percent after falling to a fresh low for the day at 113.25, weighed in part by GBP/JPY sales and also by haven demand for yen. USD losses were reversed as U.S. stocks erased an early loss to build modest gains. USD/JPY may find support from the 113.19 base line on the Ichimoku chart, as well as from last week’s 113.09 low Kuroda spoke Monday in Zurich and said there’s still a long way to go before the country reaches its inflation goal of 2%
- USD/CAD was trading near its session high of 1.2742 as the loonie weakened, initially with a decline in crude prices, while awaiting the resumption of Nafta negotiations later in the week. BOC’s Wilkins is among the roster of central bankers who will speak this week, making an appearance in New York on Wednesday
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