The dollar index slipped 0.08% after July US CPI data matched expectations and reduced the odds of a Federal Reserve rate hike. Year-on-year CPI eased to 3.4% from 3.5% in June, while core CPI eased to 2.5% from 2.6%, and the 10-year Treasury yield fell 2.1 basis points, undercutting the dollar's interest rate differentials. Markets now price a 37% chance of a 25 basis point hike at the September 15-16 FOMC meeting, down from 51% on Tuesday. The euro rose 0.08% against the dollar, and the yen gained 0.15% as safe-haven demand for the dollar was offset by reduced Fed tightening expectations. Gold and silver rallied, with October COMEX gold up 45.1 points or 1.02% and September silver up 1.415 points or 2.18%, supported by the softer dollar and lower yields.
