The dollar index rose 0.19% on Wednesday, supported by higher Treasury yields after Fed Chair Warsh offered no rate guidance at a central bank meeting in Portugal. The euro fell 0.37% after Eurozone June CPI eased to 2.8% year-over-year from 3.2%, below the 3.0% forecast, and core CPI slowed to 2.4% from 2.6%, missing the 2.5% estimate. The yen recovered from a fresh 39-year low against the dollar, posting modest gains after Japan's Q2 Tankan large manufacturing business conditions unexpectedly rose to an 8-year high of 22. Weaker-than-expected US data, including a 98,000 rise in ADP employment versus the 120,000 consensus and a drop in the ISM manufacturing index to 53.3 from an expected 53.9, capped the dollar's advance. Gold and silver prices rebounded sharply, with August COMEX gold closing up 1.09% and September silver up 0.98%, as the soft economic figures and a decline in WTI crude to a 4.25-month low bolstered expectations for easier monetary policy.
Soft US economic data and lower WTI crude bolster expectations for easier monetary policy, boosting gold prices.
Soft US economic data and lower WTI crude bolster expectations for easier monetary policy, boosting silver prices.
WTI crude fell to a 4.25-month low, driven by weak demand expectations from soft economic data.