The dollar index remained steady on Friday due to a weaker-than-expected US CPI report and a decline in the US 10-year T-note yield. Sep US CPI and core CPI reports were slightly weaker than expected, but still at a 16-month high. The final-Aug University of Michigan US consumer sentiment index fell.

On the bullish side, the Oct S&P US manufacturing PMI and services PMI reports exceeded expectations. The ongoing US government shutdown continues to undermine the dollar. Markets are predicting a 97% chance of a -25 bp rate cut at the next FOMC meeting. EUR/USD rose by +0.09% on Friday.

The euro gained support from the preliminary-Oct HCOB Eurozone manufacturing and services PMI reports, which exceeded expectations. Swaps are pricing in a 1% chance of a -25 bp rate cut by the ECB on October 30. USD/JPY rose by +0.16% due to general dollar weakness.

December COMEX gold and silver prices fell on Friday despite a dovish US CPI report. Precious metals continue to receive safe-haven support due to various factors, including the ongoing US government shutdown and uncertainty over US tariffs. Fund buying of precious metal ETFs has also supported prices recently.

Read more at Yahoo Finance: Dollar Pressured by Weaker-Than-Expected US CPI Report