The US dollar strengthened slightly, while the yen faces significant pressure.

The US Dollar Index rose 0.06% today, mainly supported by the weakness of the yen. However, the gains were limited for two reasons: Federal Reserve official Waller released hawkish signals, supporting a 25 basis point rate cut in December; coupled with the rise in the stock market, which weakened the safe-haven demand for the dollar. The market is currently pricing in a 70% probability of a rate cut at the December FOMC.

Regarding the euro, EUR/USD rose slightly by 0.08%. Improved prospects for peace in Ukraine (NATO Secretary General stated that Russia is "in a bad situation," losing 20,000 soldiers each month) provided support, but Germany's IFO Business Climate Index unexpectedly declined to 88.1 in November, which limited the increase. The probability of the European Central Bank cutting rates on December 18 is only 2%.

The yen fell the most, with USD/JPY rising by 0.38%. The Japanese government approved a stimulus plan of 17.7 trillion yen, raising concerns that debt pressure will lower the yen. The probability of the Bank of Japan raising interest rates on December 19 is only 23%.

Precious metals rebound slightly: Gold rises by 0.21%, and silver rises by 0.19%. Waller's comments on rate cuts have increased the safe-haven appeal of precious metals. China's central bank has increased its gold reserves for the 12th consecutive month in October to 74.09 million ounces; global central banks bought 220 tons of gold in Q3, a 28% increase compared to the previous quarter. However, since the peak in mid-October, profit-taking pressure has continued to weigh on prices.