The dollar index fell by -0.05% on Wednesday from a 1-week high, impacted by a decline in T-note yields and concerns about Fed independence after President Trump called for the resignation of Fed Governor Lisa Cook over mortgage fraud allegations.

EUR/USD rose by +0.08% on Wednesday, recovering from a 1-week low after President Trump’s comments on Cook. ECB President Lagarde’s remarks on slower Eurozone growth initially led to a drop in the euro.

Federal funds futures prices suggest an 84% chance of a -25 bp rate cut at the September FOMC meeting, with the minutes of the July meeting supporting a hawkish stance and stating inflation risks outweigh employment concerns.

President Trump is advocating for a summit between Presidents Putin and Zelenskiy, with European leaders considering sending troops to Ukraine. This development could impact macroeconomic factors such as tariffs and oil prices, as well as European security.

Japanese trade news showed a decline in July exports and imports, as well as a rise in Jun core machine orders. USD/JPY fell by -0.28% on Wednesday due to a stronger yen from higher government bond yields and weak dollar performance.

Precious metal prices increased on Wednesday due to a weaker dollar, lower T-note yields, and concerns about Fed independence. Political uncertainty and safe-haven demand boosted gold and silver prices, with fund buying supporting the upward trend.

UK July CPI rose by +3.8% y/y, exceeding expectations and signaling the fastest pace of increase in 1.5 years. The data may impact the BOE’s decision on interest rates and have bearish implications for precious metals due to reduced safe-haven demand.

Read more at Yahoo Finance: Dollar Moves Lower with T-Note Yields