GLOBAL MARKETS-Dollar, bond yields up on strong U.S. data; Wall St dips

* Dollar gains against euro after ECB comments

* Wall Street falls ahead of Trump inauguration

* U.S. Treasury yields hit multi-week highs

* Graphic: World FX rates in 2017 http://tmsnrt.rs/2egbfVh (Updates to late afternoon, adds commentary)

By Sinead Carew

NEW YORK, Jan 19 (Reuters) - The dollar and U.S. Treasury yields gained on Thursday after a batch of solid U.S. economic data, while U.S. shares slipped as investors remained cautious ahead of the inauguration of President-elect Donald Trump on Friday.

Oil futures rallied from one-week lows after the International Energy Agency said crude markets were tightening. The S&P 500's energy index, however, traded lower.

Benchmark 10-year Treasury notes fell 27/32 in price to yield 2.49 percent, up from 2.39 percent late on Wednesday. Yields had hit their highest since Jan. 3 after data showed U.S. homebuilding rebounded in December and the number of Americans filing for unemployment benefits unexpectedly fell last week to a near 43-year low.

But the data was not enough to embolden U.S. equity investors, who were holding fire ahead of the inauguration as they wait to see if Trump will carry through on pro-business promises such as tax cuts, fiscal stimulus and lighter regulation that had sent stocks soaring after the election.

"We may give Trump the benefit of doubt in the first hundred days," said Sam Stovall, chief investment strategist at CFRA Research. "But unless we see some legislation being passed through Congress, this hype might turn into gripe and end up being a trigger for the digestion of gains."

At 1:53PM ET, the Dow Jones Industrial Average was down 55.74 points, or 0.28 percent, to 19,748.98, the S&P 500 had lost 6.28 points, or 0.276422 percent, to 2,265.61 and the Nasdaq Composite had dropped 9.81 points, or 0.18 percent, to 5,545.84.

The dollar rose 0.5 percent against a basket of major currencies, boosted by the solid U.S. data and Federal Reserve Chief Janet Yellen comments a day ago about a path of steady interest rate increases, signaling economic strength. Yellen was due to speak again on Thursday evening.

Trading in European equities and the euro was choppy after ECB President Mario Draghi reaffirmed interest rates would stay at current or lower levels for an extended period and that the central bank was ready to increase or extend bond purchases if the outlook worsens.

The FTSEurofirst 300 index of European companies closed down 0.12 percent after falling as much as 0.4 percent earlier in the session.

The euro clawed back losses against the dollar in choppy trade and was last up 0.06 percent after falling as much as 0.4 percent after Draghi's comments.

The pound was up 0.3 percent at $1.2304 after a wild few Brexit-fueled days that saw its biggest rise in decades against the dollar and two of its heaviest slumps in months.

U.S. crude added 0.7 percent to $51.42 per barrel, after shedding 2.67 percent on Wednesday. Brent crude rose 0.6 percent to $54.28 after settling down 2.79 percent the day before.

Gold was down 0.2 percent on track for his second day of declines after falling as much as 0.7 percent.

(Additional reporting by Karen Brettell and Dion Rabouin in New York, Patrick Graham and Kit Rees in London, Lisa Twaronite in Tokyo; Editing by Larry King and Meredith Mazzilli)