The dollar index is up by 0.09% today, boosted by better-than-expected US economic news, but concerns about Fed independence are limiting gains after Trump’s comments. US home prices rose by 0.3% m/m and 1.3% y/y in October, beating expectations. The Dec MNI Chicago PMI increased by 9.2 to 43.5, exceeding forecasts. Markets are pricing in a 16% chance of a -25 bp rate cut at the next FOMC meeting. The dollar is expected to see weakness due to potential rate cuts by the FOMC in 2026, while the BOJ may raise rates and the ECB remains unchanged.

EUR/USD is down by 0.13% due to the dollar’s strength and ongoing Russian-Ukrainian war concerns. Spain’s Dec core CPI rose more than expected, a positive for ECB policy. Swaps suggest a 1% chance of a rate hike at the ECB’s next meeting. USD/JPY is up by 0.19% as the yen weakens against a stronger dollar and higher T-note yields. The BOJ is expected to raise rates in January, with markets pricing in a 1% chance. Gold and silver prices are up today, supported by concerns over Fed independence and geopolitical risks. Central bank and fund demand for gold remain high.

Read more at Yahoo Finance: Dollar Supported by Better-Than-Expected US Economic News