The US dollar has risen again, with DXY hitting a new 5.5-month high, up +0.04%. The reason behind this is quite interesting - the stock market's plummet this week has led to a surge in demand for the dollar, and several Fed pros have come to support it. Boston Fed President Collins and Dallas Fed President Logan both stated their support for keeping interest rates unchanged, which is directly favourable information for the dollar. Additionally, the US November Michigan Consumer Sentiment Index was revised up to 51.0 (expected 50.6), it was about to da moon...

As a result, New York Fed President Williams's statement "there is room for a rate cut in the near term" directly poured cold water on the situation, causing a significant pullback in the dollar's gains. This guy also hinted at rising risks in the labor market and easing inflationary pressures, implying that a rate cut is due. The market now expects a 64% chance of a 25 basis point rate cut by the Fed on December 9-10.

The euro is faring worse, with EUR/USD down -0.14% hitting a 2-week low. The Eurozone Manufacturing PMI unexpectedly dropped to 49.7 (a 5-month low), which is quite disappointing. The yen, on the other hand, has successfully bottomed out, with USD/JPY down -0.71%. The Japanese finance minister has stated they will intervene in the currency market to support the yen, and Japan's trade data is also good (October exports rose 3.6%).

Gold and silver are very contradictory—stock market plummets have increased safe-haven demand, causing gold prices to rise by 0.25%, but the appreciation of the dollar and a downward revision of inflation expectations (the 10-year expected inflation rate has dropped to 2.239%) have held it back, resulting in silver prices falling by -1.76%, hitting a two-week low. However, the Chinese central bank has increased its gold holdings for 12 consecutive months (October reserves rose to 74.09 million ounces), which still provides some support for gold prices.