By InTheMoneyStocks on May 13th, 2010 9:30am Eastern Time
This morning the Euro currency traded down to a new low ahead of the open at the New York Stock Exchange. This is not all that much of a surprise since the European Central Bank announced a $1 trillion bailout for the European banks. Often when the U.S. Dollar trades higher it will put pressure on the commodity sector. However, the new liquidity thrown at the market may just lift all boats.
Continue to monitor the U.S. Dollar Index. Should the dollar decline it is likely that the stock market will catch a bid and vice versa. As for the Euro currency traders are not expecting any major bounces higher at this point.
Traders and investors that want to trade the U.S. Dollar index to the long side can use the PowerShares DB US Dollar Index Bullish (NYSE:UUP). For the traders and investors that would like to trade the dollar to the downside or short the currency can use the PowerShares DB US Dollar Index Bearish (NYSE:UDN). The Currencyshares Euro Trust (NYSE:FXE) can be used to trade the Euro currency. Investor's can also use Currencyshares British Pound Sterling (NYSE:FXB) to trade the British Pound.
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