The dollar index rose by +0.21% to a 2.5-week high due to a slump in stocks and President Trump’s tariff threats. Markets discount a 7% chance of a -25 bp rate cut. EUR/USD fell by -0.10% but had support from ECB comments. Swaps price in a 2% chance of an ECB rate cut.

USD/JPY rose by +0.82% as the yen fell to a 2.5-week low. Tariff threats by Trump weighed on the yen, but rising JGB yields provided some support. Concerns over Japan’s upcoming election also impacted the yen. August gold and September silver surged on tariff threats and stock weakness.

Precious metals saw a rise in gold and silver prices due to tariff threats by Trump and stock weakness. Bearish factors included dollar strength and higher T-note yields. Fund buying of silver and surging copper prices also supported silver prices. Rich Asplund has no positions in the mentioned securities.

Read more at Yahoo Finance: Dollar Gains on Tariff Escalation