The US dollar continued its rise on Wednesday, with DXY soaring by 0.65% to reach a two-week high. The key reason is that the US Bureau of Labor Statistics canceled the release of the October employment data, which directly shattered the market's expectations for a rate cut in December — the probability of a rate cut dropped from 70% last week to 28%.

The Fed's key meeting minutes added fuel to the fire, with most officials taking a hawkish stance, indicating that there should be no action before the end of the year. The yen is also putting pressure on the dollar, as the Japanese government may push for a 20 trillion yen stimulus plan, and concerns over excessive debt have caused the yen to drop to a 10-month low, with USD/JPY rising 0.95% on Wednesday.

The Euro is also having a tough time, with EUR/USD falling 0.46% to a 1.5-week low. Interestingly, there are reports that the Trump administration is secretly negotiating with Russia regarding Ukraine, which has provided some support for the Euro. Additionally, the ECB has essentially exhausted its rate cut options, while the Fed is expected to continue, making this policy divergence actually favorable for the Euro.

Gold and silver rebounded on Wednesday, with gold prices rising by 0.40% and silver prices by 0.66%, mainly due to expectations of interest rate cuts in Japan stimulating safe-haven demand. However, the surging dollar and the shattered hopes of a rate cut in December have put pressure back on prices. Interestingly, China's central bank increased its gold reserves for the 12th consecutive month in October, while global central banks purchased a staggering 220 tons of gold in Q3, an increase of 28% year-on-year.