The dollar index fell -0.08% on Wednesday due to the Nov MNI Chicago PMI hitting a 17-month low. Weekly jobless claims dropped to a 7-month low, while Sep capital goods orders exceeded expectations. Kevin Hassett is a potential dovish candidate for the next US Fed Chair, affecting dollar strength.

US weekly initial unemployment claims unexpectedly fell to a 7-month low of 216,000. Additionally, US Sep capital goods new orders rose +0.9% m/m, beating expectations. However, the US Nov MNI Chicago PMI fell to 36.3, below expectations, showing a steep contraction.

EUR/USD rose to a 1-week high due to balanced risks to economic growth and inflation in the Eurozone. Uncertainty about Russian-Ukrainian peace limited gains. Swaps are pricing in a 1% chance of an ECB rate cut. USD/JPY rose due to the Nikkei Stock Index’s rally and easing Japan PPI service prices.

Japan’s Oct machine tool orders were revised upward to 17.1% y/y, the largest increase in over three years. Oct PPI services price eased to +2.7% y/y. The Japan Sep leading index CI was revised upward to 108.6. Markets are expecting a 34% chance of a BOJ rate hike in December.

Gold and silver prices rose to 1.5-week highs on Wednesday due to potential Fed Chair nominee Kevin Hassett being dovish. Dovish Fed comments increased the likelihood of a rate cut, boosting demand for precious metals. Tightness in Chinese silver supplies and central bank buying support prices.

Read more at Yahoo Finance: Dollar Slips on Stock Strength and Fed Rate Cut Expectations