The dollar index reached a 2.75-month low before bouncing back, remaining weak despite a strong US GDP report. Markets now see a reduced chance of a -25 bp rate cut at the next FOMC meeting.

US initial unemployment claims fell by -10,000, showing a stronger labor market. However, continuing claims rose, suggesting some weakness.

China’s central bank is cautious, focusing on long-term stability without sudden interest rate cuts to address economic issues.

The dollar faces pressure as the Fed increases liquidity and Trump considers a dovish Fed Chair. EUR/USD fell slightly, supported by the ECB’s stance on interest rates.

The ECB remains flexible, with council members indicating satisfaction with current interest rates. Swaps predict a 3% chance of a rate hike in February.

USD/JPY dropped as the yen gained strength after the BOJ’s rate hike. Markets see a 0% chance of a rate hike at the next BOJ meeting.

Gold and silver prices fluctuated after reaching new highs, influenced by economic data and geopolitical tensions. Precious metals have safe-haven support and strong central bank demand.

Fund demand for precious metals is high, with increased holdings in ETFs. Long-term market trends suggest ongoing support for gold and silver prices.

Read more at Yahoo Finance: Dollar Index Ends Little Changed, But Bearish Sentiment Continues