By InTheMoneyStocks on April 30th, 2010 9:42am Eastern Time
The U.S. Dollar Index is lower this morning by 0.36 cents to $81.65. Often when the dollar is lower to start the morning the S&P 500 futures are positive. This morning that is not the case as the futures are down 1.00 point.
Gold and oil are both higher this morning on the back of the weaker U.S. Dollar Index. Rumors out of Europe today are saying that there will be a resolution for Greece announced over the weekend. Have we not heard that before? The SPDR Gold Shares (NYSE:GLD) is trading higher this morning by $1.01 to $115.33. The U.S. Oil Fund (NYSE:USO) is trading higher this morning by 0.33 cents to $41.35. While the spot price in light sweet crude is higher by 0.82 cents to $85.99.
Naturally when the U.S. Dollar Index is down most commodity and inflationary stocks will be positive. However, should the dollar catch a bid it could put pressure on the markets as commodity and inflationary stocks are likely to decline.
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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