April 30 (Reuters) - The U.S. dollar index rose on Wednesday, influenced by month-end rebalancing flows and the market's downplaying of weak U.S. data linked to the anticipation of tariffs. The Treasury yield curve steepened marginally following a report Q1 GDP fell 0.3%, though final sales to domestic purchasers and wages grew. Data also showed no change for the core PCE price index for March, while ADP reported that private payrolls rose a less-than-expected 62K in April. The drop in Treasury 2-year yields came as oil sank over 3%.
ISM and weekly jobless claims are slated for Thursday. U.S. President Donald Trump said he hoped for a deal with China at a certain point, adding that he thinks fairness in trade includes managing intellectual property rights, and that Canadian Prime Minister Mark Carney is looking to make a trade deal. Mexican President Claudia Sheinbaum said her government was analyzing Trump's executive orders easing tariffs on car makers, which she called a step forward. Geopolitics may have also given the dollar a lift as tensions between India and Pakistan remained high.
China will effectively stabilise the economy and will take measures to stabilise employment, firms, markets and expectations, Xinhua also quoted Xi as saying. Chinese President Xi Jinping
Treasury Secretary Scott Bessent said Ukraine wants to make some last-minute changes to a minerals deal, while the Financial Times reported that the European union is preparing a "plan B" on how to keep economic sanctions against Russia should the Trump administration abandon Ukraine peace talks
EUR/USD fell after April ADP and Q1 GDP drove risk-off flows. European yields were little changed after data showed the euro zone economy grew faster than expected in the first quarter while inflation declined. German unemployment rose to a decade high. EUR/USD continues to hold in a range above 1.12 though a potential head and shoulders top might concern bulls. GBP/USD fell due to profit-taking at month-end and slightly lower gilt yields after a drop in U.K. house prices in April. Cable's slide sent it briefly below its 10-day moving average at 1.3337 after failed attempts to push to multi-year highs. USD/JPY held near the middle of its recent 142-144 range ahead of Thursday's Bank of Japan decision. Overnight volatility held hold firm at 18% ahead the decision and U.S. data.
Dismissing tumbling commodity prices, the Australian dollar gained against its G10 peers following an above-foreacst CPI print and as currencies in Asia firmed.
Treasury yields were mixed as the curve steepened. The 2s-10s curve was up about 4 basis points to +51.3bp.
The S&P 500 fell 0.71%. Oil slumped 3.60% on reports Saudi Arabia can live with lower oil prices.
Gold slipped 0.40% while copper tumbled over 5% against a backdrop of weak data China. Heading toward the close: EUR/USD -0.30%, USD/JPY +0.30%, GBP/USD -0.47%, AUD/USD +0.34%, DXY +0.22%, EUR/JPY -0.07%, GBP/JPY -0.20%, AUD/JPY +0.64%.(Editing by Burton Frierson Reporting by Robert Fullem)
