The dollar index is up by +0.15% due to concerns that high inflation could prevent the Fed from cutting interest rates. The Aug NAHB housing market index unexpectedly fell -1 to 32, lower than expected. Markets are awaiting the outcome of President Trump’s meeting with European leaders on the Russian-Ukrainian war.

Federal funds futures prices show an 84% chance of a -25 bp rate cut at the September FOMC meeting. EUR/USD is down by -0.23% on doubts about the Russian-Ukrainian war ending. Swaps give a 5% chance of a -25 bp rate cut by the ECB in September.

USD/JPY is up by +0.39% due to dollar strength and concerns about US tariffs impacting Japan. The yen is also affected by the Japanese Jun tertiary index rising more than expected. Gold prices are down -2.00 (-0.06%) while silver is up +0.105 (+0.28%), influenced by a stronger dollar and reduced chances of a Fed rate cut.

Precious metals have seen support from increased safe-haven demand following the lack of progress in the Trump-Putin summit. Gold benefits from safe-haven demand related to US tariffs and geopolitical risks. Fund buying continues to support prices after gold and silver holdings in ETFs reached multi-year highs.

Read more at Yahoo Finance: Dollar Gains as Fed Rate Cut Chances Slip