The dollar index is up by +0.37% due to increased T-note yields and euro weakness. Concerns about the Fed’s independence and capital flight limit dollar gains. New York Fed President Williams is optimistic about the economy and hints at possible rate cuts. Market pricing suggests a high chance of a September rate cut.

EUR/USD is down by -0.43% at a 3-week low amid German consumer confidence decline and French political turmoil. Diplomatic efforts to end the Ukraine war are stalled, impacting European security. Swaps price in a low chance of an ECB rate cut. USD/JPY is up by +0.40% on dollar strength and higher T-note yields.

Gold and silver prices fall as the dollar strengthens and T-note yields rise. Concerns about Fed independence and political uncertainty in France support precious metal prices. Fund buying continues to boost prices. President Trump’s actions and geopolitical risks contribute to safe-haven demand for gold and silver.

Read more at Yahoo Finance: Dollar Boosted by Higher T-note Yields