The Dollar Goes Whistling Dixie
The U.S. Dollar Index is probably the most important chart that any trader can follow. This morning before the opening bell the U.S. Dollar Index futures (DX U1) traded as high as $74.91 per contract. Once the personal income data was released at 8:30 am EST, the U.S Dollar Index has reversed most of its pre-market gains by declining over 0.50 cents to $74.37 per contract.
It is important for traders to understand that a 0.50 cent move in U.S. Dollar Index can move the major stock market indexes. Traders can easily see how the major stock indexes rebounded higher as the U.S. Dollar Index declined. The inverse relationship between the stock market and the U.S. Dollar Index is still very much intact.