The dollar index is up by 0.12% today, with the yen falling to a 9.25-month low against the dollar. The US government shutdown resolution is nearing, with the Senate passing a temporary CR. The Fed may continue to cut rates due to weakening economic reports.

The FOMC is expected to cut the fed funds target range by 25 bp in December. EUR/USD is down 0.04% due to a stronger dollar, but ECB member Schnabel’s hawkish comments support the euro. Central bank divergence favors the euro over the dollar.

Swaps predict a 3% chance of a rate cut by the ECB in December. USD/JPY is up by 0.43% as the yen hits a 9.25-month low against the dollar. Japanese Prime Minister Takaichi’s expansionary fiscal policy plans impact the yen, which may prompt government intervention.

Political uncertainty and a delayed BOJ rate hike contribute to the yen’s weakness. The BOJ’s next policy meeting in December has a 41% chance of a rate hike. Japan’s Oct machine tool orders rose 16.8% y/y, boosting the yen.

December COMEX gold is up 1.29%, and silver is up 3.32%. Precious metals rise on economic slowdown fears, increased safe-haven demand, and central bank buying. Stocks’ strength and the expected end of the US government shutdown hinder precious metals’ safe-haven appeal.

Central bank gold demand supports prices, with China’s PBOC and global central banks increasing reserves. Long liquidation pressures have impacted precious metals prices since mid-October. Holdings in gold and silver ETFs have fallen after reaching 3-year highs.

Read more at Yahoo Finance: Dollar Supported by Yen Weakness