Feb 14 (Reuters) - The dollar index fell for a fourth day on Friday, sliding as tariff concerns eased while U.S growth worries emerged.
Treasury 10-year yields tumbled to 4.45%, reversing gains since the January payrolls a week ago, after a report that retail sales fell by most in nearly two years. EUR/USD rose as high as 1.0514, fueled partly by optimism about Ukraine peace discussions. Ukrainian President Volodymyr Zelenskiy said he was prepared to talk to President Vladimir Putin once Ukraine had agreed on a common plan with U.S. President Donald Trump and European leaders. Britain's foreign minister David Lammy said that he and U.S. Vice President JD Vance agreed Zelenskiy must be part of any peace talks. Separately, the European Commission said it would react "firmly and immediately" against tariff increases.
USD/CHF fell below its 55-day moving average to a new year-to-date low of 0.8969.
Large 1.05 expiries and a nearby upper Bollinger slowed EUR/USD's ascent before reaching its year-to-date high at 1.0532. Options see upward momentum possibly fading with risk reversals still favoring euro puts. Dollar weakness sent GBP/USD to a new year-to-date high of 1.2631, testing its nearby upper Bollinger. Momentum is currently working in the pound’s favor. A slew of U.K. economic reports will be eyed next week including employment and CPI. British Prime Minister Keir Starmer has discussed visiting the United States on a call with Donald Trump. USD/JPY was pressured by falling Treasury yields though downward momentum stalled before it reached the key 152 level where options are stationed. Volatilities and skews fell across tenors suggesting the pair, while remaining in a bearish trend, may not move far from its 200-DMA at 152.74. Resistance is seen at its 100-DMA at 153.35 and 21-DMA of 154.16.
Treasury yields were down 3 to 6 basis points. The 2s-10s curve was down less than 1 basis point at +22.0bp.
The S&P 500 rose 0.10% as yields eased. WTI oil fell 0.70% on expectations that a Ukraine peace deal would unleash global supply.
Gold fell 1.56% in a round of profit-taking while copper was little changed. Heading toward the close: EUR/USD +0.35%, USD/JPY -0.30%, GBP/USD +0.23%, AUD/USD +0.65%, =USD -0.36%, EUR/JPY +0.04%, GBP/JPY -0.06%, AUD/JPY +0.33%.(Editing by Burton Frierson Reporting by Robert Fullem)
