Just noticed the dollar is barely moving today despite some weakness in stocks pushing it up a bit. The real story is everyone's waiting for the FOMC decision later and the market's basically pricing in a 25 bp cut at this point. Honestly, the dollar's getting hammered because of rate cut expectations - we're looking at potentially three cuts by year-end according to the pricing.



The housing data came in pretty rough too. Aug starts dropped 8.5% and permits hit a 5.25-year low, which definitely didn't help the dollar's momentum. Meanwhile, the euro's taking it on the chin with the dollar strength, even though the ECB CPI revision was dovish. The yen actually climbed to a 1.75-month high against the dollar, which is interesting given the FOMC news traders are digesting.

Gold and silver are getting hit from the stronger dollar, though they're getting some support from the Fed rate cut expectations and all the geopolitical noise. Gold actually hit an all-time high at $3,698 just yesterday, so there's definitely some safe-haven demand underneath. The FOMC meeting outcome later will probably be the main catalyst moving everything.
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