The dollar index fell by -0.95% after the US labor market cooled more than expected, increasing speculation of a Fed rate cut. The chance of a rate cut at the September FOMC meeting rose to 84%.

EUR/USD rallied +1.11% as the dollar sank on weak US payroll data. The Eurozone Jul CPI rose more than expected, supporting the euro. The euro initially dropped due to global tariff concerns.

The yen surged by +2.00% against the dollar as Japan’s Finance Minister voiced concerns about the weak yen. Safe-haven demand increased after President Trump’s tariff plans, boosting the yen.

Precious metals rose sharply as the dollar weakened on disappointing US economic reports. Geopolitical risks and safe-haven demand also supported precious metals prices. Fed comments and concerns about industrial metals demand led to a slight pullback in prices.

Read more at Yahoo Finance: Dollar Sinks and Gold Surges as Fed Rate Cut Chances Increase