Dollar Slightly Higher on Yen Weakness

Group 1: Dollar Index and Federal Reserve - The dollar index (DXY00) is up by +0.06%, supported by weakness in the yen and limited gains due to dovish comments from Fed Governor Christopher Waller advocating for a December rate cut [1][2] - Markets are pricing in a 70% chance of a 25 basis point cut in the fed funds target range at the upcoming FOMC meeting on December 9-10 [3] Group 2: Euro and German Economic Indicators - EUR/USD is up by +0.08%, driven by improved prospects for peace in Ukraine, although gains are limited by an unexpected decline in German business confidence [4][5] - The German Nov IFO business climate fell -0.4 to 88.1, below expectations of an increase to 88.5, with swaps pricing in a 2% chance of a -25 basis point rate cut by the ECB at the December 18 meeting [5] Group 3: Japanese Yen and Economic Concerns - USD/JPY is up by +0.38%, with the yen under pressure due to concerns about Japan's debt burden and a recently approved ¥17.7 trillion ($112 billion) stimulus package [6] - The market is discounting a 23% chance of a BOJ rate hike at the next policy meeting on December 19 [7] Group 4: Precious Metals Market - Gold and silver prices have recovered slightly, boosted by Waller's dovish comments, which increased demand for precious metals as a safe-haven asset [8] - Underlying demand for precious metals is supported by geopolitical risks, US tariffs, central bank buying, and political pressure on the Fed's independence [8]