Americans Just Lost Some More Of Their Buying Power
The U.S. Dollar Index has declined sharply again this morning. The U.S. Dollar Index is trading lower by 0.47 cents to $76.79. This is the lowest the U.S. Dollar Index has traded since November 4, 2010 when the index traded as low as $76.17. On January 10, 2011 the U.S. Dollar Index was trading as high as $81.63, however, since that time the U.S. Dollar Index has declined lower by $4.80 to trade at this morning's low. The next major support level will be around the $76.00 level which is the double bottom area from November 2010.
Retirees and people on fixed incomes are being directly effected from the weak U.S. Dollar Index. When the U.S. Dollar Index trades lower most of the major stock and commodity indexes will inflate higher. Remember, most every commodity is traded in U.S. Dollars, therefore, commodities and dollars usually trade inverse to each other. Many traders and investors have bought hard and soft commodities to try and defend against a weak U.S. Dollar Index. This morning the PowerShares DB US Dollar Index Bullish(NYSE:UUP) is trading lower by 0.11 cents to $22.07 a share. Most leading commodity stocks are trading higher this morning. Stocks such as U.S. Steel Corp.(NYSE:X), and AK Steel Holdings Corp.(NYSE:AKS) are both trading higher off of the weaker U.S. Dollar Index.