The dollar weakened against major currencies after Trump fired Federal Reserve Governor Lisa Cook, raising concerns about central bank independence. The euro and sterling rose, while the dollar fell against the yen and Swiss franc. The dollar index was down at 98.19. Cook disputed Trump’s authority to remove her. Markets remained relatively calm amid uncertainty over the Fed’s direction.

Investors are wary of Trump’s actions and a more dovish Fed, keeping the dollar in check. Data showed U.S. capital goods rose, but consumer confidence dipped in August. Trump has criticized Fed Chair Jerome Powell for not cutting rates. Traders predict an 85% chance of a rate cut in September. Morgan Stanley forecasts a rate cut next month.

Monetary easing expectations persist as consumers worry about employment and income prospects. The Fed’s shift towards labor market conditions could lead to two rate cuts this year. Lingering economic concerns in Europe limit bets against the dollar. France’s government bonds fell amid fears of political instability. Bond yields rose to 3.53%, the highest since March.

Bitcoin rose to $110,796.68, aiming to end a three-day losing streak. Ether climbed to $4,548.71. Global bond markets are jittery due to concerns about the Fed’s independence. Markets are watching for further developments in the U.S. and Europe.

Read more at finance.yahoo.com: Dollar trades lower as Trump’s move to fire Fed governor spooks investors