By InTheMoneyStocks on May 18th, 2010 9:29am Eastern Time
This morning the U.S. Dollar Index is trading lower by $0.19 cents to $86.03. Yesterday the dollar made a short term top around the $87.06 level. As we all know by now when the dollar declines the stock market will generally inflate. This is usually lead by most commodity and inflationary stocks. However, when the dollar catches a strong bid higher most commodity and inflationary stocks will deflate. Today we can see when the dollar declines how the major stock market indexes are all trading higher.
This morning spot gold is trading lower by 16.00 points to $1212.00. The SPDR Gold Shares (NYSE:GLD) are lower this morning by $0.54 cents to $118.82. Gold did reach new highs last week and looks to be just consolidating here at this time.
Crude is higher this morning by $2.15 to $72.22 on the back of the declining U.S. Dollar. The United States Oil Fund (NYSE:USO) is higher this morning by $0.54 cents to $34.44.
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).
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