Dollar Gains and Gold Plunges as Fed Rate Cut Expectations Fall

Group 1 - The dollar index (DXY) increased by +0.13% on Friday, recovering from a two-week low, driven by hawkish comments from Kansas City Fed President Jeff Schmid and Dallas Fed President Lorie Logan against further Fed rate cuts [1][2][3] - The probability of a Fed rate cut at the next FOMC meeting decreased from 70% to 42% following statements from several Fed presidents favoring steady interest rates [2][3] - The euro (EUR/USD) fell by -0.12% on Friday, influenced by the dollar's strength, although losses were mitigated by an upward revision of Eurozone Q3 GDP to +1.4% y/y from +1.3% y/y [4][5] Group 2 - The Japanese yen (USD/JPY) experienced a slight decline of -0.01% on Friday, despite modest gains supported by Japan's September tertiary industry index showing its largest increase in four months and rising government bond yields [6]