The US dollar index rose by +0.22% today, driven by signs of strength in the US labor market, with weekly jobless claims falling to an 8-week low. However, continuing claims rose to a 3.5-year high, indicating challenges for job seekers. Markets see a 7% chance of a rate cut at the July FOMC meeting.

EUR/USD is down at a 2-week low due to a stronger dollar and negative economic news from Italy, where May industrial production fell more than expected. Swaps are pricing in a 3% chance of a rate cut by the ECB at the July meeting.

USD/JPY rose by +0.21% today, pressured by weak Japanese producer prices and concerns about US tariffs impacting the Japanese economy. The yen is also affected by the upcoming Japanese election, with fiscal concerns weighing on the currency. Japan’s June PPI eased to +2.9% y/y.

Precious metals like gold and silver are up today due to economic uncertainty from US trade policy, boosting safe-haven demand. Central bank buying of gold, particularly by the PBOC, is also supporting prices. However, a stronger dollar and lower unemployment claims are limiting gains in metals prices. Silver is also supported by fund buying and higher copper prices.

(Source: Barchart.com)

Read more at Yahoo Finance: Dollar Boosted by Signs of US Labor Market Strength