By IntheMoneyStocks on January 29th, 2010 9:22am Eastern Time
The stock index futures and the U.S. Dollar index jumped higher after the U.S. GDP report was released around 8:30 am EST. The GDP report did come in better than expected by expanding 5.7 percent in the fourth quarter. Since the March 2009 lows the weak U.S. Dollar has been the main catalyst for stock market rally. As the dollar declined a rally in commodities and agriculture has helped inflated the market higher. Since the dollar began to rise most commodities have declined.
It will be interesting to see if the dollar and the market can both hold their pre-market gains as the actual trading day gets underway. Usually the market will advance if the dollar declines intraday . Rarely will the stock market remain strong if the dollar continues to trade higher. We shall see.
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