The dollar index (DXY00) is down by 0.06% as it weakens ahead of US-China trade talks in London. Current market data reflects a 3% chance of a 25 basis point rate cut following the June 17-18 FOMC meeting.
In forex markets, the euro (EUR/USD) is up 0.09%, driven by a weaker dollar and hawkish comments from ECB member Kazimir regarding the end of the easing cycle. The ECB now has a 14% likelihood of a rate cut at the July 24 meeting. Meanwhile, USD/JPY is down 0.18%, supported by better-than-expected Japanese economic data, with May’s Eco Watchers Outlook rising to 44.8, above the forecast of 44.0, and Q1 GDP revised to -0.2% from -0.7%.
In precious metals, gold has decreased by $4.40 (-0.13%) to a one-week low, while silver has risen by $0.486 (+1.34%), reaching a 13-year high. Support for silver comes from the positive revision of Japan’s GDP and increased ETF holdings, alongside ongoing geopolitical tensions.
