(Bloomberg) -- The dollar reversed all of the previous day's losses, gaining as commodities saw broad losses and the euro reached a three-month low.
The Bloomberg Dollar Spot Index was up about 0.3 percent, earlier rising more than 0.4 percent, the most in two weeks. After surging Monday, oil and metals fell Tuesday, making resource-linked currencies such as the Australian, New Zealand and Canadian dollars the biggest losers against the greenback among G-10 peers. U.S. job openings rose slightly in September, according to one of the few economic data reports due this week. Traders might find interest in wholesale trade Thursday or consumer sentiment Friday.
- The dollar reached a session high shortly after 10am in New York, with the Bloomberg Dollar Spot Index posting the biggest gain since Oct. 27. WTI crude was nursing slight losses near $57/bbl as traders looked past political turmoil in Saudi Arabia. The Aussie, kiwi and loonie were all down by ~0.6%. With the U.S. data and event calendar sparse, traders will continue to watch Washington for developments on tax reform and President Trump's trip in Asia
- Long-end Treasuries outperformed for a 9th straight day, flattening the 5s30s spread to a new multi-year low
- EUR/USD was trading ~1.1592. The shared currency fell to a fresh three-month low at 1.1554 in European trading as bids and stop-loss sell orders clustered around the post-ECB low at 1.1575 were tripped, according to traders in Europe and London. Lack of follow-through on the move allowed bids ahead of an option barrier strike at 1.1550 to cushion the drop
- USD/JPY was trading under 114.00 at ~113.87 after a washout from Monday's 7-month high at 114.73 halted at 113.70, encouraging dip buyers to return as support from recent lows ~113.60 remained intact. USD may find supply at 114.50, where large option expiries roll-off Wednesday.
- Trader talk suggests some of the previously tripped stop-loss buy orders ~114.50 may have reloaded, as some accounts will try to jump on any fresh momentum above that level. A close above 114.50 could portend stronger gains for the pair, a trader in Toronto said
To contact the reporters on this story: Alexandria Arnold in Seattle at abaca3@bloomberg.net, Dennis Pettit in New York at dpettit5@bloomberg.net.
To contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Greg Chang
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