The dollar index rose by +0.09% to a 2-week high, driven by signs of strength in the US labor market and higher T-note yields. US weekly initial unemployment claims unexpectedly fell to an 8-week low of 227,000, while continuing claims rose to a 3.5-year high.

St. Louis Fed President Musalem sees upside risks to inflation, but it’s too early to assess the impact of tariffs. Markets predict a 7% chance of a -25 bp rate cut at the July FOMC meeting. EUR/USD fell by -0.22% due to a stronger dollar and negative Eurozone economic news.

Italy’s May industrial production fell by -0.7% m/m, below expectations. Swaps indicate a 3% chance of a -25 bp rate cut by the ECB in July. USD/JPY fell by -0.08%, recovering from early losses as T-note yields retreated. Concerns over Japanese election promises have weighed on the yen.

Japan’s June PPI eased to +2.9% y/y. Precious metals rose on Thursday due to economic uncertainty from US trade policy, safe-haven demand, and central bank buying. Gold prices were also boosted by inflation hedge demand and central bank gold purchases. Dollar strength limited gains, while higher T-note yields were unfavorable for precious metals.

Fund buying and ETF holdings supported silver prices, with a rally in copper prices providing additional support. President Trump announced a 50% tariff on copper imports, further impacting metal prices. The article was solely for informational purposes.

Read more at Yahoo Finance: Dollar Rises on Positive US Labor Market News