The dollar index rose by +0.09% on Monday, driven by a jump in T-note yields. The Fed is expected to cut the federal funds target range by 25 bp at the FOMC meeting. President Trump is likely to nominate Kevin Hassett as the new Fed Chair, impacting the dollar’s future.

EUR/USD fell by -0.03% on Monday due to dollar strength and comments from Ukrainian leader Zelenskiy. Eurozone economic news showed positive signs, supporting the euro. ECB’s next interest rate move is expected to be an increase, boosting the euro further.

The Eurozone Dec Sentix investor confidence index rose +1.2 to -6.2, beating expectations. German Oct industrial production also exceeded expectations with a +1.8% m/m increase. ECB’s Isabel Schnabel expressed comfort with market expectations of an interest rate increase.

USD/JPY rose by +0.39% on Monday as the yen faced pressure from weaker-than-expected Japanese economic data. The BOJ is expected to raise interest rates by +25 bp later this month. Japan’s Q3 GDP was revised downward, and the Nov eco watchers outlook survey fell below expectations.

Gold and silver prices closed lower on Monday due to a stronger dollar and hawkish central bank comments. Precious metals have support from expectations of a Fed rate cut at the FOMC meeting. Central bank demand for gold remains strong, while silver faces tight Chinese inventories and fluctuating ETF holdings.

Read more at Yahoo Finance: Dollar Edges Higher with T-Note Yields