The U.S. Dollar Index Holds The Cards For The Markets Today
This morning, the U.S. Dollar Index futures (DX U1) have surged higher by 0.57 cents to $75.78 per contract. Usually, when the U.S. Dollar Index pops higher it is on the back of fear in the European Union. Traders can look at the CurrencyShares Euro Trust (NYSE:FXE) and see that it is trading lower by $1.41 to $140.01 a share.
Whenever the U.S. Dollar Index is strong the leading commodity and energy stocks will generally trade lower. This morning, leading stocks such as Southern Copper Corp.(NYSE:SCCO), Cliffs Natural Resources Inc.(NYSE:CLF), and ConocoPhillips(NYSE:COP) are all trading sharply lower. Should the U.S. Dollar Index pullback throughout the session these stocks could see some upside off of the morning lows. If the U.S. Dollar Index remains strong and continues to trade higher then the leading commodity and energy stocks could decline further throughout the day. Traders that do not have a chart of the U.S. Dollar Index can use the PowerShares DB US Dollar Index Bullish (NYSE:UUP).