The dollar strengthens on robust US economic data and Fed rate hike expectations, while gold and silver rally as lower crude prices and bond yields drive demand for precious metals.
The dollar index climbed to a 2-week high on stronger-than-expected US retail sales and expectations of a Fed rate hike.
WTI crude oil fell about 2% today, lowering inflation expectations and supporting dovish central bank policy.
Gold rallied 1.09% as falling crude prices and lower global bond yields outweighed a firmer dollar and expected rate hikes.
EUR/USD declined as dollar strength outweighed better-than-expected Eurozone industrial production data.
USD/JPY rose to a 1-week high as weak Japanese core machine orders and defense spending concerns pressured the yen.
Silver rose 1.57% alongside gold, supported by lower yields and expectations of easier monetary policy.
The US dollar index climbed to a 2-week high following stronger-than-expected August retail sales data. Markets are currently pricing in a 94% probability of a 25 basis point interest rate hike at today's FOMC meeting, despite a 2% slide in WTI crude oil prices.
The dollar is supported by robust US retail sales growth and strong market expectations that the Federal Reserve will implement a 25 basis point rate hike at the current FOMC meeting.
Gold and silver are benefiting from a decline in global bond yields and lower crude oil prices, which have tempered inflation expectations and fueled speculation of easier monetary policy.