The dollar index is up by +0.16% due to higher T-note yields and liquidity demand. Weakness in stocks and negative Chicago Fed national activity index data limit gains. Concerns over Fed independence persist after President Trump’s threat to fire Fed Governor Lisa Cook. US new home sales fell unexpectedly, but still beat expectations.

EUR/USD is down by -0.14% as the euro weakens against a stronger dollar. Doubts about the end of the Russian-Ukrainian war weigh on the euro. The German Aug IFO business climate survey beat expectations, but geopolitical tensions persist. ECB President Lagarde’s comments support the euro.

Diplomatic efforts to end the Ukraine-Russia war remain uncertain, impacting tariffs and oil prices. Russian Foreign Minister Lavrov states there is no meeting planned between the leaders without a clear agenda. Swaps price in a 1% chance of an ECB rate cut. USD/JPY is up by +0.34% due to higher T-note yields and hawkish BOJ comments.

Precious metal prices fall due to a stronger dollar and higher global bond yields. Hawkish comments from BOJ Governor Ueda suggest a potential rate hike. Safe-haven demand for gold remains high amid US political uncertainty and geopolitical risks. President Trump’s threat to fire Fed Governor Lisa Cook adds to the safe-haven appeal.

Read more at Yahoo Finance: Dollar Follows T-Note Yields Higher