FOREX-Dollar oscillates as market digests U.S. inflation data, ECB

Reuters

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    * FX volatility at lowest since February 2020
    * Traders eye steep U.S. inflation numbers
    * Bitcoin steady after biggest rally in four months
    * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

 (Updates prices, adds commentary, changes byline, previous
dateline LONDON)
    By Sinéad Carew
    NEW YORK, June 10  (Reuters) - The dollar index was down
slightly on Thursday in a choppy session in which it alternated
between losses and gains as investors digested elevated U.S.
inflation data and commentary from the European Central Bank.
    After adopting a wait-and-see attitude all week, sucking
volatility from the market and leaving major currencies mostly
range-bound Thursday's news appeared to add little new direction
to currency markets.  urn:newsml:reuters.com:*:nL5N2NE5H7
    The European Central Bank raised its growth and inflation
views but promised to keep ample stimulus flowing, fearing that
a retreat now would accelerate a worrisome rise in borrowing
costs and choke off recovery.  urn:newsml:reuters.com:*:nL2N2NS0FH
    And across the pond, data showed that the number of
Americans filing new claims for unemployment benefits fell last
week to the lowest level in nearly 15 months, while consumer
prices increased further in May as the pandemic's easing grip on
the economy continued to boost domestic demand.  urn:newsml:reuters.com:*:nL2N2NR2Q5
    The dollar index  =USD , which measures the greenback
against a basket of major currencies, has fluctuated narrowly
around the psychologically important 90 level, and was last down
0.08% at 90.058  The euro  EUR=EBS  was last up 0.02% at $1.218.
    "You have this tug between the two currencies and it's
creating a back and forth. That's why you're seeing a little bit
of a cap in terms of dollar weakness and euro strength," said
Minh Trang, Senior FX Trader at Silicon Valley Bank.
    "The overall trend has been a bit of dollar weakness not
just because of the robust growth in the U.S. there's been
robust growth over all. A lot of economies have been
recovering," he said. "When you have optimism in overall global
growth typically that creates a risk on mentality that's going
to favor other currencies over the dollar."
    The Australian dollar  AUD=D3  was up 0.25% at $0.7749 while
the new Zealand dollar  NZD=D3  was up 0.33% at $0.7199. 
    The yen  JPY=EBS  traded at 109.5850 per dollar, also down
slightly from Wednesday.
    Deutsche Bank's Currency Volatility Index  .DBCVIX , was at
its lowest level since February 2020.
    Investors were closely watching for U.S. consumer prices for
any signs that higher prices could last longer than expected,
potentially calling into question the Federal Reserve's
insistence that current inflation pressures are transitory and
monetary stimulus should stay in place for some time yet.
    "People are digesting what the next move may be. The data
today didn't give enough lift to commit to one side or the
other," said Trang.    
    Traders sent longer-term U.S. Treasury yields higher after
Thursday's inflation data steepening a closely watched part of
the yield curve.  urn:newsml:reuters.com:*:nL2N2NS1GG
    In crypto markets, bitcoin  BTC=BTSP  held gains from its
biggest rally since February on Wednesday, when it jumped nearly
12%. 
    It last traded slightly higher at $37,464, after rebounding
from a three-week low of $31,025 hit on Tuesday when signs of
institutional investor caution and regulatory attention drove
selling. 
    The best-known crypto currency has struggled since reaching
a record $64,895.22 in mid-April.
    
    ========================================================
    Currency bid prices at 10:03AM (1403 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
                                              Session                                             
 Dollar index      =USD       90.0580        90.1400     -0.08%         0.086%        +90.3210    +90.0080
 Euro/Dollar       EUR=EBS    $1.2180        $1.2179     +0.02%         -0.30%        +$1.2194    +$1.2144
 Dollar/Yen        JPY=EBS    109.5850       109.6300    -0.04%         +6.06%        +109.7900   +109.4500
 Euro/Yen          EURJPY=    133.46         133.53      -0.05%         +5.15%        +133.7500   +133.1200
 Dollar/Swiss      CHF=EBS    0.8947         0.8960      -0.12%         +1.15%        +0.8991     +0.8946
 Sterling/Dollar   GBP=D3     $1.4157        $1.4114     +0.30%         +3.62%        +$1.4159    +$1.4074
 Dollar/Canadian   CAD=D3     1.2092         1.2110      -0.16%         -5.06%        +1.2124     +1.2077
 Aussie/Dollar     AUD=D3     $0.7749        $0.7731     +0.25%         +0.75%        +$0.7757    +$0.7719
 Euro/Swiss        EURCHF=    1.0897         1.0909      -0.11%         +0.83%        +1.0925     +1.0897
 Euro/Sterling     EURGBP=    0.8603         0.8625      -0.26%         -3.74%        +0.8642     +0.8597
 NZ                NZD=D3     $0.7199        $0.7178     +0.33%         +0.28%        +$0.7206    +$0.7165
 Dollar/Dollar                                                                                    
 Dollar/Norway     NOK=D3     8.2775         8.2775      +0.19%         -3.42%        +8.3450     +8.2750
 Euro/Norway       EURNOK=    10.0820        10.0807     +0.01%         -3.68%        +10.1542    +10.0620
 Dollar/Sweden     SEK=       8.2573         8.2611      -0.02%         +0.74%        +8.2873     +8.2535
 Euro/Sweden       EURSEK=    10.0590        10.0614     -0.02%         -0.17%        +10.0801    +10.0570
  

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates    https://tmsnrt.rs/2RBWI5E
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Additional reporting by Ritvik Carvalho in London, Kevin
Buckland in Tokyo;Editing by Elaine Hardcastle, Gareth Jones and
Raissa Kasolowsky)
 ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net))

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