Dollar Moves Higher With Bond Yields

Group 1: Dollar Index and Economic Indicators - The dollar index (DXY00) is up by +0.07% and is just below a one-week high, supported by a rise in US existing home sales to a 7-month high of 4.06 million, reflecting a +1.5% month-over-month increase [1][2] - Higher T-note yields have strengthened the dollar's interest rate differentials, while weakness in the yen has also benefited the dollar as it fell to a 1.5-week low [1][6] - The ongoing US government shutdown is limiting dollar gains, with potential implications for the US economy and Federal Reserve interest rate decisions [1] Group 2: Euro and Consumer Confidence - The EUR/USD pair is up by +0.01%, recovering from overnight losses due to an unexpected rise in the Eurozone's October consumer confidence indicator to an 8-month high of -14.2, which was stronger than expectations [4][5] - Central bank divergence is supporting the euro, as the Fed is expected to continue cutting interest rates while the ECB nears the end of its rate-cutting cycle [4] Group 3: Precious Metals Market - December COMEX gold is up by +89.00 (+2.19%) and December COMEX silver is up by +1.114 (+2.34%), rebounding after two days of losses [7] - The rise in precious metals is attributed to sanctions on Russian oil producers, which have led to a surge in crude prices and increased inflation expectations, boosting demand for gold and silver as hedges against inflation [7]