Dollar Moves Lower with T-Note Yields

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The dollar index (DXY00) decreased on Wednesday by -0.05 %. The dollar fell from the highest level in one week on Wednesday and turned a slightly decrease in a decrease in T-Note yield. Also, the political risks and concerns about the independence of the federal reserve was its weight on the dollar after President Trump called for the ruler of the Federal Reserve, Lisa Cook, to resign amid investigation into personal real estate loans. FHFA PULTE director wrote a letter to Bondi Public Prosecutor, who suggests that Mrs. Cook may have committed a criminal crime by falsifying banking documents and property records to obtain more appropriate loan conditions.

The dollar rose at the top on Wednesday after the euro/the US dollar fell to the lowest level per week when the European Central Bank President Lagarde said she sees a slower growth in the euro area. Also, Wednesday’s weaknesses on Wednesday, the demand for liquidity on the dollar. In addition, the dollar has support due to speculation that the price of the strongest producers’ price index that was in the most powerful July that was expected last July could prevent the Federal Reserve from Reducing interest rates at the FOMC meeting next month, as the expectations for reducing interest rates decreased to 25 basis points in September to 84 % of an area of 93 % before the report.

On Wednesday’s minutes of the July 29 meeting of FMC confrontation was the truth and support of the dollar. The minutes showed that most policy makers ruled the upper risks of inflation as a greater danger than weaker work, saying that the labor market is “strong”, but inflation remained “somewhat high.”

Future prices in federal funds make the chances of reducing the interest rate -25 basis points by 84 % at the FOMC meeting from 16 to 17 September and 55 % to reduce the second interest rate from 25 basis points on 28-29 October.

EUR/USD (^Eurusd) rose on Wednesday by +0.08 %. The euro recovered from the lowest level in one week on Wednesday and spread modest gains after the dollar fell when President Trump said that Federal Reserve Governor Lisa Cook “must be resigned” now because of allegations of fraud in the mortgage.

The euro initially fell on Wednesday on the comments of the President of the European Central Bank of Lagarde, who said that the economy of the euro zone is likely to witness a slower growth in this quarter, with questions about global trade remaining despite recent commercial deals with the United States that reduce uncertainty.

President Trump presses a summit between Presidents Putin and Zelinski soon, and European leaders are discussing a plan to send British and French forces to Ukraine as part of the peace agreement. The result can have the effects of the macroeconomic economy with regard to tariffs and oil prices, and of course, it can have severe consequences for European security.

The bares are captured at an 8 % chance of a rate of -25 basis points by the European Central Bank at the September 11 Policy meeting.

USD/JPY (^USDJPY) fell on -0.28 %. The yen rose to the top on Wednesday due to the weakness of the dollar. Also, Japanese government bonds revenues have strengthened the highest interest rates in the yen and strengthened the yen after the rise of JGB bonds for 10 years to the highest level in 16 years on Wednesday by 1.621 %. In addition, the lower rolls on Wednesday supported the yen. The Japanese economic news was mixed on Wednesday with the yen, as the orders of the Jun Core machine increased unexpectedly, but July exports recorded the largest decline in about 4.5 years.

Japanese commercial news was mixed with a decrease in July -2.6 % on an annual basis, weaker of -2.1 % on an annual basis and the largest decrease in about 4.5 years. However, July -7.5 % imports on an annual basis decreased, which is a smaller decrease from -10.0 % on an annual basis.

The orders of the Japanese machine in Yunoun are unexpectedly increasing +3.0 % m/m, stronger than expected to decrease by -0.5 %/m.

Gold was closed in December (GCZ25) on Wednesday +29.80 (+0.89 %), and September (SIU25) +0.441 (+1.18 %) closed. The prices of precious metals were recovered from early losses on Wednesday and rose due to the weakest dollar and the decrease in T-Note revenues. The increase in political uncertainty in the United States and concerns about the independence of the Federal Reserve has strengthened the demand for safe term on precious metals after President Trump called to the ruler of the Federal Reserve Lisa Cook to resign amid allegations of fraud on the mortgage. Gold still has safe support for US tariffs and geopolitical risks, including conflicts in Ukraine and the Middle East. The purchase of valuable mineral funds continues to support prices after gold holdings in the investment funds circulated to their highest levels for two years last Friday, and Silver Holdings in ETFS reached the highest level in 3 years on Tuesday.

The precious metals initially decreased on Wednesday, as the signs of progress in peace talks against Ukraine had some safe demand. Also, the UK CPI report on Wednesday may prevent the Bank of England from lowering interest rates and is a declining for precious minerals. Fears about the demand for industrial minerals are a declining silver prices after the European Central Bank President Lagarde said that the eurozone economy is likely to witness a slower growth in this quarter.

The CPI Jul Jul +3.8 % Y/Y, stronger than +3.7 % on year and the fastest pace for the increase in 1.5 years. The consumer price index of Jul Core +3.8 % on an annual basis, is stronger than +3.7 % on an annual basis.

On the date of publication, Rich Asplund did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com

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2025-08-20 19:34:00

0 4 minutes read