The dollar index is up 0.30% due to weakness in the yen and easing US-China trade tensions. However, gains are limited by the Oct Philadelphia Fed non-manufacturing business activity survey falling to a 4-month low. Markets predict a 99% chance of a -25 bp rate cut at the next FOMC meeting. Swaps indicate a 2% chance of a -25 bp rate cut by the ECB.

EUR/USD is down 0.26% as the euro weakens against the dollar. S&P Global Ratings cutting France’s credit rating also impacts the euro negatively. Further downside may be limited due to central bank divergence, with the Fed expected to cut rates while the ECB nears the end of its rate-cutting cycle.

USD/JPY is up 0.60% as the yen falls to a one-week low against the dollar after Sanae Takaichi becomes Prime Minister. Takaichi’s policies favor increased deficit spending and financial stimulus, driving the yen lower. Japan’s Sep machine tool orders were revised upward by +11.0% y/y, the largest increase in 6 months.

Gold and silver prices are down today, with silver reaching a one-week low. Precious metals are pressured by a stronger dollar and the easing of US-China trade tensions. However, prices had rallied to record highs due to safe-haven support and weaker-than-expected US economic news. Fund buying of precious metal ETFs has also boosted prices.

Read more at Yahoo Finance: Dollar Climbs on Yen Weakness and Easing US-China Trade Tensions