The dollar index rose by +0.41% to a 1.5-week high, supported by hawkish Fed comments. Initial jobless claims rose to a 2-month high, weakening the dollar. US PMI and existing home sales reports boosted the dollar, while concerns about Fed independence arose after Trump called for a Fed Governor’s resignation.

EUR/USD fell by -0.36% due to a stronger dollar and a decrease in consumer confidence. However, strength in Eurozone PMI data provided some support. US Vice President Vance is working on security guarantees for Ukraine, with potential macroeconomic implications. Swaps price in a 3% chance of an ECB rate cut.

USD/JPY rose by +0.71% as the dollar strengthened on positive economic news and Fed comments. The yen faced pressure from higher T-note yields and concerns about US tariffs. Japanese manufacturing PMI rose, supporting the yen. Precious metals were mixed, with gold impacted by the dollar rally and hawkish Fed comments.

Gold and silver prices were influenced by the dollar rally, higher bond yields, and Fed comments. Weakness in the labor market and political uncertainty supported precious metals. Silver saw increased demand for industrial metals. Fund buying of precious metals also contributed to price support.

Read more at Yahoo Finance: Dollar Moves Higher on Hawkish Fed Comments