NEW YORK ( TheStreet) - The U.S. dollar was mostly weaker vs. the majors, as the euro made a marginal new high for the cycle at 1.2778 before FOMC minutes helped the buck recover. The minutes from the recent FOMC meeting were not as dovish as some had expected and this seems to have encouraged some profit-taking on short dollar positions. As widely expected the Fed cut inflation and growth forecasts, but not as severely as anticipated.

The yen was firmer across the board as risk appetite eased after weak US data, as retail sales was weaker than expected at -0.5% in June. Dollar losses look likely to continue near-term. Sterling boosted by strong UK jobs data, while EM FX was mostly firmer. Biggest gainers on the day vs. USD were KRW, CLP, JPY, GBP, and SEK, while biggest losers vs. USD were CAD, MXN, BRL, PEN, and ILS.

U.S. equity markets were mixed, as DJIA, S&P and Nasdaq ended flat, flat, and up 0.35%, respectively. European markets were virtually flat, with Euro Stoxx 50 up 0.05%. Asian equities are likely to open up today as Asian ADRs were higher during N. American trading Wednesday. Nikkei futures point to a down Japan open, and the stronger yen should hurt Japan exporters.

The U.S. bond market was higher, as 2- and 10-year yields were down 6 bp and 7 bp, respectively. US 30-year auction went well, with bid-cover (2.89) and indirect bidders (37.4%) rising from the previous auction. European bond markets were mostly lower, as 10-year yields in UK, France, and Germany were up 2 bp, 2 bp, and 1 bp, respectively. Greek 10-year yields rose 7 bp, Portugal rose 8 bp, Ireland rose 17 bp, Italy rose 6 bp, and Spain rose 8 bp.
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