The dollar index fell by -0.21% on Tuesday amid concerns over Fed independence and potential capital flight if Governor Cook is fired. However, the dollar recovered slightly after Cook’s refusal to resign and positive US economic reports. Capital goods orders rose, but home price growth slowed, and consumer confidence dipped slightly.

Euro rose by +0.22% on Tuesday against the dollar, benefiting from dollar weakness and concerns over Fed independence. However, gains were limited due to French consumer confidence falling to a 1.75-year low and political turmoil in France. The eurozone also faces uncertainty amid geopolitical tensions in Ukraine.

Yen gained strength on Tuesday, with USD/JPY falling by -0.30%, driven by dollar weakness and higher Japanese bond yields. The yen also benefited from safe-haven demand due to a decline in the Nikkei Stock index and lower T-note yields. However, gains were limited by weaker-than-expected Japan PPI services prices.

Gold prices closed up +0.45% on Tuesday, reaching a two-week high, supported by dollar weakness and concerns over Fed independence. Gold also saw safe-haven demand due to political uncertainty in France. However, prices fell slightly after Fed Governor Cook’s vow not to resign and positive US economic reports.

Read more at Yahoo Finance: Fed Turmoil Weighs on the Dollar and Boosts Gold