The dollar rose slightly by 0.06% today, with the weak yen being the main driver— the yen is still struggling to hold onto the 10-month low set last Friday. However, the dollar's gains are limited due to dovish signals from The Federal Reserve Board of Governors member Waller, who indicated support for a 25bp rate cut in December, with the market currently pricing this probability at 70%.

At the same time, the strengthening stock market has also reduced the demand for the dollar as a safe haven. The euro rose 0.08% today, mainly due to improved expectations for peace in Ukraine, but the unexpected decline of the German IFO Business Climate Index to 88.1 in November has suppressed the increase.

The yen is under the most pressure, with the USD/JPY rising by 0.38%. The Japanese government approved a stimulus plan of 17.7 trillion yen (112 billion USD) last Friday, which is larger than the plan proposed by former Prime Minister Kishida last year, raising concerns about depreciation. The market is pricing in only a 23% probability of the Bank of Japan raising interest rates in December.

In terms of precious metals, Waller's dovish comments have pulled back demand. December COMEX gold rose 0.21% to $8.70 per ounce, and silver rose 0.19%. China's central bank's gold reserves hit a record high of 74.09 million ounces in October, increasing for 12 consecutive months; global central banks purchased 220 tons of gold in Q3, a 28% increase compared to the previous quarter. However, there is still pressure from recent long position liquidations, and the holdings of gold and silver ETFs have retreated from the three-year high reached on October 21.