The dollar index (DXY00) rebounded by +0.23% today, driven by higher T-note yields and short covering. The US government shutdown and weak labor market data are increasing expectations of a Fed rate cut. US Sep Challenger job cuts fell 25.8% y/y to 54,064, with 946,426 jobs cut this year.

Markets anticipate a -25 bp rate cut at the Oct 28-29 FOMC meeting. EUR/USD (^EURUSD) is down by -0.17%, influenced by a stronger dollar and higher unemployment rate in the Eurozone. ECB policy remains dovish. Central bank divergence favors the euro, while the Fed is expected to cut rates further.

Japan’s consumer confidence index rose to a 9-month high of 35.3 in Sep. BOJ Deputy Governor Uchida’s hawkish comments supported the yen. Precious metal prices dropped as the dollar rebounded and T-note yields rose. Gold and silver prices were also pressured by BOJ’s stance on raising rates.

Precious metals receive safe-haven support amid US government shutdown and Fed rate cut expectations. Geopolitical risks and trade tensions boost demand for gold. Fund buying of precious metal ETFs continues, with gold and silver holdings at 3-year highs. President Trump’s actions contribute to market uncertainty.

Read more at Yahoo Finance: Dollar Rebounds on Higher T-note Yields