The dollar index is up due to weakness in the yen and dovish comments from Fed Governor Christopher Waller. Waller is advocating for a December rate cut, with markets pricing in a 70% chance of a cut on December 9-10. EUR/USD is up slightly on improved prospects for peace in Ukraine, but German IFO business confidence fell unexpectedly. Swaps price in a 2% chance of an ECB rate cut in December.

USD/JPY is up as the yen is pressured by Japan’s debt burden and a stimulus package. T-note yield declines limit yen losses, with markets discounting a 23% chance of a BOJ rate hike on December 19. Gold and silver prices are up after Waller’s dovish comments, with underlying safe-haven demand amid geopolitical risks and central bank buying.

Central bank demand for gold supports prices, with China’s PBOC boosting its gold reserves. Global central banks purchased 220 MT of gold in Q3, up 28% from Q2. Long liquidation pressures have weighed on precious metals prices since mid-October, with holdings in gold and silver ETFs falling after reaching 3-year highs on October 21.

Read more at Yahoo Finance: Dollar Slightly Higher on Yen Weakness