The dollar held near a one-year high on Thursday but its rally appeared to lose steam as upward momentum in the “Trump trade” stalled while Treasury yields eased amid weakness in U.S. equities.

In U.S. data, producer prices rose 0.2% in October amid rising service costs while weekly jobless claims unexpectedly dipped.

High union wage settlements and the possibility of coming tariff increases are among the uncertainties that could make U.S. Federal Reserve officials more cautious about inflation, Richmond Federal Reserve President Tom Barkin said.

Fed Chair Powell will provide an update on his economic outlook to business leaders in Dallas and New York Fed President John Williams is also slated to speak on Thursday.

EUR/USD firmed off its lows up after earlier reports that euro zone employment rose last quarter.
Minutes of the European Central Bank's Oct.
16-17 meeting showed policymakers divided on the risk of excessively low price growth.

Bank of England policymaker Catherine Mann said that interest rates should be on hold until upside risks to inflation, including those posed by the incoming U.S. administration, dissipate.
Traders await Mansion House comments from finance minister Rachel Reeves and Bank of England Governor Andrew Bailey later Thursday.

Treasury yields were lower as the curve flattened.
The 2s-10s curve was down 5 basis points to +11.6bp.

The S&P 500 fell 0.35% amid weakness in industrial shares.

Oil firmed 0.1% though rising U.S. crude inventories slowed its ascent.

Gold slipped 0.13% while copper was little changed as a still relatively strong U.S. dollar weighed on metal prices.

Heading toward the close: EUR/USD -0.15%, USD/JPY +0.26%, GBP/USD -0.14%, AUD/USD -0.2%, DXY +0.17%, EUR/JPY +0.15%, GBP/JPY +0.17%, AUD/JPY +0.05%.

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