The dollar index is down by -0.37% due to a stronger yuan, reaching a 9.5-month high against the dollar. Concerns over the Fed’s independence and fears of capital flight are rising with President Trump’s move to fire Fed Governor Lisa Cook, potentially leading to a loss of faith in the Fed and dollar.

US Q2 GDP was revised upward to +3.3%, exceeding expectations of +3.1%. Weekly initial unemployment claims fell by -5,000 to 229,000, close to the expected 230,000. Jul pending home sales in the US fell -0.4% m/m, weaker than the anticipated -0.2% m/m.

The euro is up by +0.38% against the dollar, boosted by an upbeat summary of the July ECB meeting and a report showing a +7.4% y/y increase in Eurozone new car registrations. However, the Eurozone’s Aug economic confidence indicator declined unexpectedly, limiting gains in the euro.

Diplomatic efforts to end the war in Ukraine are ongoing, with no meeting planned between the leaders of Russia and Ukraine. Geopolitical outcomes could impact tariffs, oil prices, and European security. Swaps are pricing in a 3% chance of a -25 bp rate cut by the ECB in September.

The yen is down by -0.35% against the dollar, supported by hawkish comments from BOJ Board member Junko Nakagawa affirming the BOJ’s intention to raise interest rates. Precious metal prices are up, with gold at a 2.5-week high and silver at a 5-week high due to a weaker dollar and increased safe-haven demand.

Read more at Yahoo Finance: Dollar Slips on Yuan Strength and Concern Over Fed Independence