May 1 (Reuters) - The dollar index rose alongside share prices on Thursday on robust tech earnings, stronger-than-expected ISM manufacturing and as U.S. officials touted progress in trade negotiations. U.S. President Donald Trump said things were also moving along "very well" on the tax bill.
DXY eclipsed the key 100 psychological level for the first time in two weeks.
Treasury yields bounced back from earlier declines after a surge in jobless claims pushed them to a new three-week low. The U.S. jobs report for April will be released on Friday. U.S. Treasury Secretary Scott Bessent said he was confident Beijing will want to reach a deal on tariffs, will lessen uncertainty on tariffs every day, and that the 2-year Treasury yield below Fed funds signals the Fed should cut. He also said that the U.S.-Ukraine minerals deal, hailed by President Volodymyr Zelenskiy, is a full economic partnership that will that allow Trump to negotiate with Russia on a stronger basis. A social media account affiliated with Chinese state media said the United States has approached China seeking tariff discussions. Mexican President Claudia Sheinbaum said she had a "very positive" conversation with Trump. The yen slumped the most this year due to a combination of improved risk sentiment, position squaring and banks reducing their expectations for Bank of Japan rate hikes following the policy meeting and updated economic forecasts. USD/JPY's rise above its 21-day moving average, prior 144 resistance and the April 3 low of 145.19 leaves bulls in control before the U.S. job data. The March 11 USD/JPY low of 146.55 is the next resistance point ahead of the April 9 high at 148.27. EUR/JPY is also experiencing a potential topside breakout above its upper Bollinger at 163.71.
Japan March jobs data is due on Friday.
EUR/USD eased for a third day, hitting a 12-session low near its 21-DMA at 1.1265 amid broad gains in the greenback. The April 10 high of 1.1241 is the next support level if prices deteriorate further. GBP/USD continued its setback, slipping after a report that British factory exports shrank the most in almost five years. The Bank of England is expected to lower interest rates by a quarter point on May 8.
Treasury yields were up 5 to 8 basis points as the curve flattened. The 2s-10s curve was up about 2 basis points to +16.5bp.
The S&P 500 rose 1.09%, climbing for an eighth day to a near one-month high. Oil gained 0.7% buoyed by demand factors ahead of next week's OPEC meeting and after U.S.-Iran talks were postponed
Gold fell 1.78% as the dollar gained while copper firmed 0.48%.
Heading toward the close: EUR/USD -0.40%, USD/JPY +1.80%, GBP/USD -0.38%, AUD/USD -0.30%, DXY +0.77%, EUR/JPY +1.39%, GBP/JPY +1.41%, AUD/JPY +1.50%.(Editing by Burton Frierson Reporting by Robert Fullem)
