Trade Tensions Drive Up Dollar Amid Stock Market Weakness

The US dollar index is up 0.14% due to liquidity demand amid stock market weakness and concerns over rising tariffs. President Trump’s signing of the reconciliation bill will add $3.4 trillion to US budget deficits, affecting the dollar negatively.

EUR/USD is down 0.37% on dollar strength and weak Eurozone economic data. The Eurozone’s July Sentix investor confidence index rose to a 3.5-year high, offsetting losses. German industrial production unexpectedly increased.

USD/JPY is up 0.88%, with the yen falling to a 1.5-week low against the dollar due to concerns over US tariffs on Japanese exports. President Trump’s trade deal comments and rising T-note yields are also impacting the yen.

August gold and September silver prices are down due to a strong dollar, higher global bond yields, and industrial metals demand concerns. Precious metals are under pressure, but safe-haven demand is increasing amid trade tensions and stock market weakness.

Read more at Yahoo Finance: Trade Tensions Boost the Dollar