The dollar index fell by -0.22% on Monday due to speculation of weak US labor market news prompting the Fed to cut interest rates. However, the dollar recovered slightly after August pending home sales rose +4.0% m/m, the largest increase in 5 months. The US Sep Dallas Fed manufacturing activity survey unexpectedly fell to -8.7.

EUR/USD rose by +0.23% on Monday, driven by a weaker dollar and upbeat economic news in the Eurozone. ECB Governing Council member Makhlouf’s hawkish comments also supported the euro. Eurozone Sep economic confidence unexpectedly rose to 95.5, higher than expectations. Markets view the ECB as nearing the end of its rate-cut cycle.

USD/JPY fell by -0.60% on Monday as a weaker dollar and lower T-note yields boosted the yen. The Japan Jul leading index CI was revised upward to 106.1, a 4-month high. BOJ board member Noguchi’s hawkish remarks on interest rate hikes also strengthened the yen.

December gold closed up +1.21% and December silver closed up +0.77% on Monday, reaching contract and record highs. Precious metals rallied due to a weaker dollar, lower global bond yields, and safe-haven demand amid US tariffs and Fed rate cut expectations. Mixed Fed comments on inflation and employment impacted precious metal prices positively.

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