The dollar index rose by +0.65% to a 2-week high after the BLS canceled the Oct employment report, lowering the chances of a Fed rate cut. The yen weakened, supporting the dollar, while US trade news was bullish. US MBA mortgage applications fell -5.2% as the average 30-year fixed rate mortgage rose to 6.37%.

The US Aug trade deficit shrank to -$59.6 billion, narrower than expected. The FOMC minutes were hawkish, stating it’s likely to keep interest rates steady for the remainder of the year. Markets are pricing in a 28% chance of a rate cut at the next FOMC meeting. EUR/USD fell by -0.46% due to a stronger dollar and central bank divergence.

USD/JPY rose by +0.95% as the yen hit a 10-month low against the dollar. Dovish comments from Japan undercut the yen, with a supplementary budget expected to boost domestic demand. Japanese economic news was supportive for the yen. Gold and silver prices rose on Wednesday amid safe-haven demand and geopolitical risks, with central bank buying supporting prices.

Precious metals fell from highs as the dollar rallied and FOMC rate cut expectations faded. Strong central bank demand for gold continues, with the PBOC boosting its gold reserves. Long liquidation pressures have weighed on precious metals prices. Central banks purchased 220 MT of gold in Q3, up 28% from Q2.

Read more at Yahoo Finance: Dollar Rallies as December Fed Rate Cut Expectations Fade