The dollar index fell by -0.05% on Tuesday due to US labor market weakness, with ADP reporting job cuts this month. The Nov NAHB housing market index unexpectedly rose to a 7-month high. Aug factory orders met expectations. Markets anticipate a 47% chance of a Fed rate cut in December.

US weekly initial unemployment claims were 232,000, while continuing claims rose to a 2-month high. ADP reported US employers cut 2,500 jobs per week. The Nov NAHB housing market index rose to a 7-month high. Swaps price in a 3% chance of ECB rate cut.

EUR/USD fell by -0.07% as the euro initially rose on US labor market weakness but fell on geopolitical risks from Russia. Central bank divergence favors the euro. USD/JPY rose by +0.17% as the yen hit a 9.5-month low on BOJ’s dovish stance and Japan’s weak Q3 GDP.

Gold and silver prices fell on reduced expectations of a Fed rate cut in December. Precious metals have safe-haven demand amid uncertainty. Central bank buying supports prices. Long liquidation pressures have weighed on prices after record highs in mid-October.

Read more at Yahoo Finance: Dollar Slips on Weak US Labor Market News