The dollar index rose by 0.04% as it anticipates Friday’s US CPI report. Existing US home sales hit a 7-month high, boosting the dollar. The yen’s weakness benefits the dollar after falling to a 1.5-week low. President Trump is set to meet President Xi Jinping next Thursday in South Korea.

US Sep existing home sales rose 1.5% to 4.06 million, meeting expectations. The markets predict a 99% chance of a 25 bp rate cut at the next FOMC meeting. Swaps indicate a 1% chance of a rate cut by the ECB at the October 30 policy meeting.

EUR/USD rose by 0.06% as the Eurozone Oct consumer confidence indicator survey unexpectedly rose to an 8-month high. The euro faces pressure from the stronger dollar and political crisis in France. USD/JPY rose by 0.37% as the yen tumbled to a 1.5-week low amid concerns over Japan’s monetary policy.

Gold and silver prices surged on Thursday, rebounding after two days of losses. Precious metals rallied due to US sanctions on Russian oil producers, boosting inflation expectations. Gold and silver prices hit record highs last week amid safe-haven demand and Fed rate-cut expectations.

Precious metals prices are supported by fund buying of ETFs, with gold and silver holdings reaching multi-year highs. The ongoing US government shutdown, US-China trade tensions, and geopolitical risks continue to bolster precious metals. Recent weaker US economic data reinforces expectations for further Fed rate cuts.

Read more at Yahoo Finance: Dollar Slightly Higher Before Friday’s US CPI Report