Dollar Falls and Gold Surges on Dovish Fed Comments

Core Viewpoint - The dollar index is experiencing downward pressure due to dovish comments from the Federal Reserve and disappointing economic data, while the euro is gaining strength amid easing political risks in France and supportive comments from the European Central Bank. Group 1: Dollar Performance - The dollar index (DXY00) is down by -0.21% and has reached a one-week low, influenced by dovish remarks from Fed Governor Christopher Waller regarding potential interest rate cuts to support the labor market [1] - The October Philadelphia Fed business outlook survey fell significantly by -36.0 to a six-month low of -12.8, which was weaker than the expected 10.0, contributing to bearish sentiment for the dollar [3] - The ongoing US government shutdown is also seen as a negative factor for the dollar, as prolonged shutdowns could harm the US economy [3] Group 2: Economic Indicators - The October NAHB housing market index rose by +5 to a six-month high of 37, surpassing expectations of 33, indicating some positive momentum in the housing sector [3] - Richmond Fed President Tom Barkin noted that US productivity growth appears to be improving "significantly," which may help mitigate inflationary pressures from trade tariffs [4] Group 3: Euro Performance - The EUR/USD pair is up by +0.21% and has reached a one-week high, supported by easing political risks in France after Prime Minister Lecornu survived two no-confidence votes [5] - Hawkish comments from ECB Governing Council member Wunsch indicated that the likelihood of additional ECB rate cuts has been decreasing, further supporting the euro [5][6]