Can The Greenback Fall Enough To Save The Markets
Nearly every trading session when the stock market is lower the U.S. Dollar Index is higher. Well, that is certainly the case once again today. This morning, the U.S. Dollar Index futures (DX-M2) are trading higher by 0.38 cents to $79.69 per contract. While 0.38 cents does not sound like much in the U.S. Dollar Index; it can move markets. If you are a trader that does not have a chart of the U.S. Dollar Index you can follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) which will emulate the action in the U.S. Dollar.
Generally, most leading commodities such as oil, gold, copper, iron and other will trade inverse to the U.S. Dollar Index. These days most leading stock indexes including the NASDAQ Composite, and the Russel 2000 will trade inverse to the U.S. Dollar. Should the U.S. Dollar Index begin to decline traders should watch for indexes such as the iShares Russell 2000 Index (ETF) (NYSEARCA:IWM), SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA), and the ProShares Ultra S&P500 (ETF) (NYSEARCA:SSO) to catch an intra-day bid off of the morning lows.