The dollar index is down by -0.35% due to a rebound in equity markets reducing demand for the dollar. US Jul JOLTS job openings fell more than expected to a 10-month low of 7.181 million. US Jul factory orders fell -1.3% m/m, marking the second consecutive month of decline.

Fed Governor Christopher Waller suggests cutting interest rates at the next meeting to prevent a sharp slowdown in the job market. St. Louis Fed President Alberto Musalem emphasizes a balanced approach to policy. Atlanta Fed President Raphael Bostic sees one interest rate cut this year.

Concerns over Fed independence and fears of capital flight negatively impact the dollar. Foreign investors may swap dollar assets into non-dollar investments if Fed Governor Lisa Cook is fired. Federal funds futures prices predict a -25 bp rate cut at the September and October FOMC meetings.

EUR/USD is up by +0.32%, benefiting from dollar weakness and strong Eurozone July PPI data. Eurozone Aug S&P composite PMI was revised lower. Eurozone July PPI eased +0.2% y/y from June. Efforts to end the war in Ukraine are ongoing, posing risks for the euro.

USD/JPY is down by -0.17% as the yen recovered from a 1-month low against the dollar. Japan’s Aug S&P services PMI was revised upward. Negative carryover from Japan’s political news initially pushed the yen lower. Precious metal prices rise due to a weaker dollar, lower T-note yields, and geopolitical concerns. Gold continues to find safe-haven support amidst global uncertainties.

Read more at Yahoo Finance: Dollar Falls as Weak JOLTS Report Boosts Fed Rate Cut Chances