It Is 10:30, Do You Know What The Dollar Is Doing?
This morning, the major stock market indexes are trading higher on the session, this can only mean that the U.S. Dollar Index is trading lower. The U.S. Dollar Index futures(DX M1) are trading lower by 0.21 cents to $76.02 per contract. At this time, the U.S. Dollar Index(DXY) chart simply trades inverse to the major stock market indexes. In the past three weeks, the U.S. Dollar Index has rallied higher by over 3.00 points. This is the same amount of time that the major stock market indexes have been pulling back. If you look at the intra-day chart below, you can clearly see how the S&P 500 Index futures(black and white candles) will trade directly inverse to the falling U.S. Dollar Index futures(red and green candles).
At this time, everything seems to inflate and trade higher when the U.S. Dollar Index declines. Generally, the best movers in the market from a falling U.S. Dollar will be commodities, energy stocks, and the major stock market indexes. Should the U.S. Dollar Index catch a bid and trade higher these sectors will simply deflate and trade lower.