March 27 (Reuters) - The dollar traded mixed on Thursday with prices influenced by quarter-end flows and early responses to the newly announced U.S. auto tariffs scheduled to be implemented next week. US data was largely better-than-expected. Weekly jobless claims fell in the latest week, Q4 GDP was revised up, the U.S. trade deficit improving and pending home sales rising in February. Focus now turns to Friday's PCE reading for February and adjustments to the March University of Michigan report. The dollar index slipped back below its 21-day moving average at 104.44 with bears eyeing a potential head and shoulders decline to the September low near 100.
EUR/USD rebounded from a 16-session low on quarter-end flows and bids ahead of the pair's 200-DMA. Friday's U.S. PCE data may reintroduce the euro's downside risks before expected reciprocal tariffs are announced next week. Large option experies at 1.0750 and 1.0800 helped contain spot movements, though a potential bullish engulfing pattern may be forming after a six-day slide. European Central Bank data showed euro zone lending accelerated last month, a sign that growth momentum in the region persists. Separately, European leaders vowed to strengthen Kyiv's army while seeking a peaceful solution to the war in Ukraine. GBP/USD rose due to a combination of dip buying, portfolio rebalancing, firmer gilt yields and pound strength against currencies most affected by the upcoming U.S. auto tariffs. Britain is trying to secure an exemption from these tariffs. A rising 21-day moving average at 1.2887 is support ahead of the 200-day moving average of 1.2803, a key pivot area for pound bulls.
EUR/GBP continues to struggle holding gains as its test its 100-day moving average of 0.8330. U.K. February retail sales data for February will be released on Friday
USD/JPY remained bid throughout Thursday's session due to quarter-end flows, short-covering and reflation bets. The potential negative impact of auto tariffs on Japan growth may also be driving yen weakness. USD/JPY is gradually approaching its 151.30 March high and 200-day moving average at 151.66. Yen crosses are broadly higher with GBP/JPY at its strongest level since early January. Tokyo CPI on Friday will be closely monitored given its potential impact on the Bank of Japan outlook.
Treasury yields were mixed as the curve steepened. The 2s-10s curve was up about 4 basis points to +33.0bp.
The S&P 500 edged up 0.07% after being lower for most of the session.
WTI oil prices edged up 0.34% on supply concerns and tensions in the Middle East.
Gold rose about 1.2% to a new record while copper slid 2% on profit-taking.
Heading toward the close: EUR/USD +0.41%, USD/JPY +0.36%, GBP/USD +0.50%, AUD/USD +0.11%, =USD -0.33%, EUR/JPY +0.77%, GBP/JPY +0.88%, AUD/JPY +0.45%.(Editing by Burton Frierson Reporting by Robert Fullem)
