The dollar index is down to a 2-week low, influenced by BOJ Governor Ueda’s signal of a possible interest rate hike and weaker-than-expected Nov US ISM manufacturing index. Expectations for a Fed rate cut also contribute to the dollar’s pressure, with a 100% chance discounted at the Dec 9-10 FOMC meeting.

The dollar is suffering from negative carryover due to reports of Kevin Hassett as a potential successor to Jerome Powell as US Fed Chair. Hassett’s nomination, viewed as dovish, would impact the dollar. Fed independence could be questioned if Hassett supports Trump’s interest rate cuts.

EUR/USD is up at a 2-week high, supported by a weaker dollar and bullish comments from ECB Governor Nagel. Divergent central bank policies favor the euro, with the ECB done cutting rates while the Fed is expected to continue. The Eurozone Nov S&P manufacturing PMI shows contraction.

Gold and silver prices rise, with silver hitting an all-time high due to a decline in the dollar index and expectations of a Fed rate cut. Precious metals are sought after as a store of value amid increased demand. Kevin Hassett’s potential Fed Chair nomination adds to the appeal of precious metals.

USD/JPY falls as the yen strengthens to a 2-week high after hawkish comments from BOJ Governor Ueda. Safe-haven demand rises with a Nikkei Stock Index slump. Japan Q3 capital spending is weaker than expected, and the Nov S&P manufacturing PMI shows contraction. Markets predict an 87% chance of a BOJ rate hike.

Central bank demand for gold supports prices, with China’s PBOC increasing gold reserves for the twelfth consecutive month. Global central banks purchased more gold in Q3. Long liquidation pressures have weighed on precious metals prices since mid-October. Silver faces tight Chinese inventories and underlying safe-haven demand.

Read more at Yahoo Finance: Dollar Softens as Fed Rate-Cut Chances Rise