The dollar index is down by -0.42% at a 2.25-month low, as expectations for Fed rate cuts weigh on the currency. US retail sales and manufacturing production data beat expectations. Concerns over Fed independence also contribute to dollar weakness.

Euro/USD is up by +0.69% at a 4-year high, driven by dollar weakness. ECB is seen as finishing its rate-cut cycle, while the Fed is expected to cut rates further. Eurozone economic data is mixed, with labor costs rising and German economic growth expectations improving.

USD/JPY is down by -0.55%, supported by dollar weakness and a stronger-than-expected Japan tertiary index. Yen gains after Japanese Minister Koizumi announces run for party leadership, seen as hawkish on fiscal policy. Japan tertiary index rose +0.5% m/m in July.

Precious metal prices are up, with gold and silver hitting contract highs. Dollar weakness and Fed rate cut expectations support metals. Central bank comments limit gains. Gold benefits from geopolitical uncertainty in the US, France, and Japan. Fund buying of precious metal ETFs also boosts prices.

Read more at Yahoo Finance: Dollar Falls and Gold Pushes to a New Record High on Fed Easing Prospects