{"id":12803,"date":"2025-06-17T14:34:00","date_gmt":"2025-06-17T18:34:00","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/06\/17\/weak-stocks-boost-liquidity-demand-for-the-dollar-2\/"},"modified":"2025-06-17T14:34:00","modified_gmt":"2025-06-17T18:34:00","slug":"weak-stocks-boost-liquidity-demand-for-the-dollar-2","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/06\/17\/weak-stocks-boost-liquidity-demand-for-the-dollar-2\/","title":{"rendered":"Weak Stocks Boost Liquidity Demand for the Dollar"},"content":{"rendered":"<div class=\"layout__region nsdq-l-grid__item syndicated-article-body\">\n<section class=\"jupiter22-c-article-body\">\n<div class=\"body\">\n<div class=\"body__content\">\n<p>The dollar index (DXY00) today is up by +0.22%.\u00a0 The dollar is climbing today on an increase in liquidity demand for the dollar as stocks fell after President Trump downplayed the chance of an early end to the Israel-Iran war.\u00a0 However, the dollar fell back from its best level after US May retail sales fell more than expected, and the June NAHB housing market index unexpectedly fell to a 2-1\/2-year low.\u00a0 The dollar continues to be undercut by expectations of weaker US economic growth and reduced foreign investment in the US caused by President Trump&#8217;s tariffs.<\/p>\n<p>US May retail sales fell -0.9% m\/m, weaker than expectations of -0.6% m\/m.\u00a0 May retail sales ex-autos unexpectedly fell -0.3% m\/m versus expectations of a +0.2% m\/m increase.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-2G4\"  class=\"btf-bodymidpagetwothirdswidth-1\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-2G4')) {             googletag.display('js-dfp-tag-2G4');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>     <span>Join 200K+ Subscribers: <\/span> Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.  <\/p>\n<p>\u00a0<\/p>\n<p>The US May import price index ex-petroleum rose +0.2% m\/m, slightly stronger than expectations of +0.1% m\/m.<\/p>\n<p>The US Jun NAHB housing market index unexpectedly fell -2 to a 2-1\/2 year low of 32, weaker than expectations of an increase to 36.<\/p>\n<p>President Trump played down the chance of a ceasefire in the Israel-Iran war when he said that he hasn't reached out to Iran for peace talks \"in any way, shape or form\" and that a \"permanent end and not a ceasefire\" to the nuclear dispute with Iran would be the goal.\u00a0<\/p>\n<p>The markets are discounting the chances at 0% for a -25 bp rate cut after the Tue-Wed FOMC meeting.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-av4\"  class=\"btf-bodymidpagetwothirdswidth-2\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-av4')) {             googletag.display('js-dfp-tag-av4');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>EUR\/USD (^EURUSD) today is down by -0.11%. \u00a0The euro is under modest pressure today due to a stronger dollar.\u00a0Also, dovish comments today from ECB Governing Council member Stournaras weighed on the euro when he said the ECB may proceed with additional interest rate cuts if economic growth and inflation slow more than expected.\u00a0 Losses in the euro are limited after the German Jun ZEW survey expectations of economic growth rose more than expected.<\/p>\n<p>The German Jun ZEW survey expectations of economic growth index rose +22.3 to 47.5, stronger than expectations of 35.0.\u00a0<\/p>\n<p>ECB Governing Council member Stournaras said the ECB has found \"equilibrium\" on interest rates, inflation, and economic growth, but \"if the Eurozone economy weakens further, if inflation decreases further below the target, then we may proceed to further rate cuts.\"\u00a0<\/p>\n<p>Swaps are discounting the chances at 7% for a -25 bp rate cut by the ECB at the July 24 policy meeting.<\/p>\n<p>USD\/JPY (^USDJPY) today is up by +0.13%.\u00a0 The yen gave up overnight gains and turned lower after the BOJ kept interest rates unchanged as expected and after BOJ Governor Ueda said he couldn't comment on the possibility of a rate hike coming in the near term.\u00a0 The yen initially moved higher against the dollar today on increased safe-haven demand after President Trump downplayed the possibility of an early end to the Israel-Iran war.\u00a0 Also, today's action by the BOJ to cut its bond purchases for Q3 was supportive of the yen.\u00a0 In addition, lower T-note yields today are bullish for the yen.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-Ofo\"  class=\"btf-bodymidpagetwothirdswidth-3\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-Ofo')) {             googletag.display('js-dfp-tag-Ofo');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>As expected, the BOJ voted 9-0 to keep its benchmark interest rate unchanged at 0.50% and voted to cut its Q3 monthly bond purchases to 3.705 trillion yen from 4.105 trillion yen in Q2.\u00a0 The BOJ also announced it will trim its monthly bond purchases from April 2026 at a quarterly pace of 200 billion yen ($1.3 billion) from the current 400 billion yen.<\/p>\n<p>BOJ Governor Ueda said he can't comment on the possibility of a rate hike coming in the near term, and any move in interest rates will hinge on the BOJ's assessment of the economic data.<\/p>\n<p>August gold (GCQ25) today is down -11.30 (-0.33%), and July silver (SIN25) is up +0.692 (+1.90%).\u00a0 Precious metals today are mixed, with silver soaring to a 13-year high. \u00a0Today's dollar strength is negative for precious metals.\u00a0 Gold prices were also pressured after the BOJ announced it was cutting its bond purchases for Q3.\u00a0<\/p>\n<p>Precious metals have safe-haven support from Middle East hostilities after President Trump today downplayed the chance of an early end to the Israel-Iran war.\u00a0 Also, lower global bond yields today are supportive of precious metals.\u00a0 In addition, global trade uncertainty is boosting safe-haven demand for precious metals after President Trump indicated last Wednesday that he is moving ahead with his reciprocal tariffs.\u00a0 Gold garnered some support today as an inflation hedge after the US 10-year breakeven inflation rate rose to a 1-week high.\u00a0<\/p>\n<p>Silver garnered support today after US May manufacturing production rose as expected, and after the German Jun ZEW survey expectations of economic growth rose more than expected, positive factors for industrial metals demand.\u00a0Silver prices added to their gains today on technical buying after prices posted a new 13-year high.\u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-l38\"  class=\"btf-bodymidpagetwothirdswidth-4\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-l38')) {             googletag.display('js-dfp-tag-l38');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p class=\"body__disclaimer\">     On the date of publication,      Rich Asplund              did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.          For more information please view the Barchart Disclosure Policy      here. <\/p>\n<\/p>\n<p class=\"body__disclaimer\">The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p>        <script type=\"text\/javascript\">   \/\/ add oddAd class to every odd instance of body .ads__inline for different placeholder styles   let articleAds = document.querySelectorAll('.ads__inline');   for (let i = 0, len = articleAds.length; i < len; i++) {     \/\/ Do the below only if the curent count is less than 12     if ((i < 12) &#038;&#038; (i % 2 === 0)) {       articleAds[i].className += ' oddAd';     }   } <\/script>                                               <\/p>\n<div class=\"jupiter22-c-tags jupiter22-c-tags-default\">\n<h3 class=\"jupiter22-c-tags-title\">         Tags       <\/h3>\n<div class=\"jupiter22-c-tags-container\">Stocks<\/div>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The dollar index (DXY00) today is up by +0.22%.\u00a0 The dollar is climbing today on an increase in liquidity demand for the dollar as stocks fell after President Trump downplayed the chance of an early end to the Israel-Iran war.\u00a0 However, the dollar fell back from its best level after US May retail sales fell 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