The dollar index fell to a 1.5-week low due to signs of a weakening US labor market, with private employers shedding more jobs than created. The Senate passed a CR to fund the government, expected to pass the House, and signed by President Trump, which may prompt the Fed to continue cutting interest rates.

EUR/USD climbed to a 1.5-week high, supported by a weaker dollar and favorable comments from ECB members. However, the unexpected decline in the German Nov ZEW survey tempered gains. Central bank divergence favors the euro, as the Fed is expected to cut rates further, while the ECB may be done cutting rates.

USD/JPY is down as the yen recovered from a low against the dollar. The larger-than-expected increase in the Japan Oct Eco Watchers Outlook Survey was bullish for the yen. The yen faces weakness due to political uncertainty and a delayed BOJ rate hike, with a 45% chance at the next policy meeting.

Precious metals rose with gold hitting a 2-week high and silver a 3-week high, supported by a weaker dollar and speculation of a weakening US economy. Gains accelerated after a report showed US labor market weakness. Limited gains are seen due to improving prospects of ending the US government shutdown.

Strong central bank demand for gold supports prices, with China’s PBOC and global central banks increasing gold reserves. Precious metals face safe-haven demand amid the US government shutdown, geopolitical risks, and central bank buying. Long liquidation pressures have weighed on prices after record highs in mid-October.

Read more at Yahoo Finance: Dollar Slides on Signs of US Labor Market Weakness