U.S. Dollar Index Plummets After GDP

The U.S. Dollar Index futures (DX U1) plummeted lower after the second quarter gross domestic product (GDP) number was released. Normally, when the U.S. Dollar Index declines it will help to inflate the major stocks and commodity markets, however, today could be a different scenario. Stocks such as Freeport McMoRan Copper & Gold Inc. (NYSE:FCX), Cliffs Natural Resources Inc. (NYSE:CLF), and Southern Copper Corp. (NYSE:SCCO) are coming under early selling pressure despite the decline in the U.S. Dollar Index.

At this time, the inverse relationship between the U.S. Dollar Index and the major stock market indexes may not be intact. The stock markets are confused as the failed U.S. debt ceiling deal out of Washington remains in limbo. Traders should watch for any kind of news from the politicians, any indication of a debt ceiling deal could cause the markets to bounce intra-day. Traders should realize that the U.S. Dollar Index futures will have some short term intra-day support around the $74.00 area.

About Nicholas Santiago 575 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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