Dollar Weakens and Gold Soars to a Record High on Fed Rate Cut Expectations

Group 1: Dollar Index and Economic Indicators - The dollar index (DXY00) is down by -0.17% due to dovish comments from Boston Fed President Susan Collins, reinforcing expectations of interest rate cuts at the upcoming FOMC meeting [1][3] - The US Oct Empire manufacturing survey rose +19.4 to 10.7, exceeding expectations of -1.8, which provided some recovery for the dollar after its worst levels [1][3] Group 2: US Government Shutdown Impact - The ongoing US government shutdown is bearish for the dollar, with prolonged shutdown likely to negatively impact the US economy [2] Group 3: Euro Performance and Political Factors - The EUR/USD is up by +0.15% due to a weak dollar and hawkish comments from ECB officials, which signaled that current interest rates are appropriate [4] - Optimism surrounding budget concessions by French Prime Minister Lecornu is boosting the euro, as it may help avoid a no-confidence vote and restore political stability in France [4] - However, gains in the euro are limited by political uncertainty, as Lecornu faces a no-confidence vote that could lead to a snap election [5] - Eurozone's August industrial production fell -1.2% m/m, the largest decline in four months, but better than the expected -1.6% m/m [5]