The dollar index is down -0.37% to a 1-week low. Hawkish comments from ECB’s Holzmann lifted EUR/USD to a 1-week high. Minneapolis Fed President suggested rate cuts due to the slowing economy. Trump announced upcoming tariffs on semiconductor and pharmaceutical imports. Fed rate cut expectations are high, with futures pricing in a -25 bp cut in September.

EUR/USD is up +0.44% at a 1-week high, supported by Holzmann’s comments. Concerns linger over Trump’s tariff policies impacting Eurozone growth. Eurozone retail sales rose +0.3% m/m as German factory orders fell unexpectedly. Swaps predict a 13% chance of a -25 bp ECB rate cut in September.

USD/JPY is down -0.16% as the yen strengthens on Japan’s wage growth and BOJ policy. Yen gains are limited by higher T-note yields and concerns about ending QE too quickly. Japan’s labor cash earnings rose +2.5% y/y in June.

Gold is down while silver is up, with metals reacting to the dollar’s fall and dovish Fed comments. Precious metals are seen as a safe-haven amidst economic uncertainties. Gold prices turned lower due to Holzmann’s comments and higher T-note yields. Geopolitical risks continue to support precious metals.

Read more at Yahoo Finance: Dollar Weakens on Dovish Fed Comments