The dollar index is down by -0.29% on speculation of weak US labor market news prompting further rate cuts, with the looming risk of a government shutdown. August pending home sales rose +4.0% m/m, the highest in 5 months. Meanwhile, the Sep Dallas Fed manufacturing activity survey fell unexpectedly.

Cleveland Fed President’s hawkish comments on inflation support the dollar, with markets pricing in an 89% chance of a -25 bp rate cut at the next FOMC meeting. EUR/USD is up by +0.29% due to the dollar’s weakness and positive economic news from the Eurozone.

The Eurozone Sep economic confidence index rose unexpectedly, supporting the euro. ECB’s Makhlouf believes the ECB is near the end of its rate-cutting cycle. Swaps are pricing in a 2% chance of a rate cut by the ECB. USD/JPY is down by -0.62% due to a weaker dollar and hawkish comments from a BOJ board member.

Precious metal prices are climbing with gold hitting a contract high and silver posting a 14-year high. The rally is fueled by a weaker dollar, lower global bond yields, and geopolitical risks. Fund buying of precious metal ETFs also supports prices, despite a rally in stocks and hawkish comments from Cleveland Fed President.

Overall, the market sentiment is influenced by central bank policies, economic indicators, and geopolitical tensions, driving movements in currency pairs and precious metal prices.

Read more at Yahoo Finance: Dollar Falls on Expectations of Weak US Labor Reports