The dollar index (DXY) rose by +0.19% on Wednesday, following President Trump’s signing of a deal to end the partial US government shutdown. The dollar gained support from a stronger-than-expected January ISM services index (unchanged at 53.8) and weakness in stocks, while the yen fell to a 1.5-week low, adding to dollar strength. However, the January ADP employment report showed only +22,000 job additions, underperforming expectations of +45,000.
In the Eurozone, the January core CPI was revised downward to 2.2% year-on-year, the smallest increase in four years, while the composite PMI was adjusted to 51.3. The euro fell by -0.12%. Meanwhile, in Japan, the S&P services PMI was revised upward to 53.7. The yen weakened amid expectations of a liberal fiscal policy ahead of a planned election, posting a rise of +0.73% against the dollar.
Safe-haven demand for precious metals surged, with April COMEX gold rising by +15.80 (+0.32%) and March COMEX silver up +1.095 (+1.31%). This uptick was influenced by heightened geopolitical tensions, particularly around Iran. Central bank demand for gold also remained robust, with China increasing its reserves by +30,000 ounces in December.
