Dollar Declines and Gold Soars on Expectations of Fed Rate Cuts

Group 1: Dollar Index and Economic Indicators - The dollar index (DXY00) fell by -0.28% on Wednesday, influenced by dovish comments from Boston Fed President Susan Collins, who suggested further interest rate cuts are prudent this year [1][4] - The US Oct Empire manufacturing survey rose by +19.4 to 10.7, exceeding expectations of -1.8, indicating stronger business conditions [3] - The Fed's Beige Book reported stable employment levels but noted a slight decline in consumer spending and rising input costs, which could influence Fed policy [3] Group 2: 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 - The EUR/USD rose by +0.24% due to a weak dollar and hawkish comments from European Central Bank officials, indicating that current interest rates are appropriate [5] - Optimism surrounding French Prime Minister Lecornu's budget concessions contributed to the euro's gains, as it may restore political stability in France [5] - However, gains in the euro were limited by a significant decline in Eurozone's August industrial production, marking the largest drop in four months [5]