The dollar index fell by -0.12% as President Trump called for Fed Governor Lisa Cook to resign amid mortgage fraud allegations. Speculation about the Fed’s rate cut in September decreased to 84%. Federal funds futures prices predict a -25 bp rate cut with 84% certainty at the September FOMC meeting.

EUR/USD rose by +0.09% after President Trump’s comments caused the dollar to retreat. ECB President Lagarde’s remarks on slower Eurozone growth initially pushed the euro lower. Trump’s call for Cook’s resignation impacted currency markets, with the euro gaining ground.

President Trump is proposing a summit between Presidents Putin and Zelenskiy, with talks of deploying troops to Ukraine. This could affect tariffs, oil prices, and European security. Swaps suggest a 7% chance of a -25 bp rate cut by the ECB at the September 11 meeting.

USD/JPY declined by -0.35% due to dollar weakness and higher Japanese government bond yields. Japanese economic news was mixed, with Jun core machine orders rising unexpectedly. July exports and imports recorded declines, impacting the yen’s performance.

Precious metal prices increased as the dollar weakened and political uncertainty rose. Gold and silver saw safe-haven support amid geopolitical risks. Progress in Ukraine peace talks and hawkish UK CPI data initially pressured prices. Gold holdings in ETFs reached a 2-year high, supporting prices.

Read more at Yahoo Finance: Dollar Falls as Trump Calls for Fed Governor Cook to Resign