Nearly every trading session when the stock market is lower the U.S. Dollar Index is higher. Well, that is certainly the case once again today. This morning, the U.S. Dollar Index futures (DX-M2) are trading higher by 0.38 cents to $79.69 per contract. While 0.38 cents does not sound like much in the U.S. Dollar Index; it can move markets. If you are a trader that does not have a chart of the U.S. Dollar Index you can follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) which will emulate the action in the U.S. Dollar. 

A flurry of bad news has weighed on risk appetite, driving low yielding currencies such as the U.S. dollar and Japanese Yen sharply higher against the euro, British pound and commodity currencies. 

Here are 8 of the main reasons why risk is being sold:

http://www.fx360.com/

Eurozone may now be facing its third consecutive quarter of contraction in the wake of much weaker than expected flash PMI readings from the region. German and French data was weaker as well with both services and manufacturing data also missing estimates.

http://www.fx360.com/commentary/Index.aspx

Yen Strengthens as French Election Damps Demand for Risk

http://www.businessweek.com/news/2012-04-22/dollar-rises-against-major-peers-before-confidence-report

http://www.marketwatch.com/story/turnout-tops-expectations-as-france-votes-2012-04-22

http://www.marketwatch.com/story/japan-stocks-rise-in-mostly-downbeat-asia-2012-04-22

http://www.marketwatch.com/story/china-manufacturing-shrinks-at-slower-pace-hsbc-2012-04-22

The G20 and the IMF will wrap up their meetings this weekend and the hope is that at bare minimum, the IMF will announce a sizeable increase to their funds, which would allow them to provide greater support to Europe in case a large country such as Spain comes knocking on their doors. 

http://www.fx360.com/commentary/Index.aspx

 This upcoming week, Fed Chairman Ben Bernanke will have to decide whether or not the turn in data is significant enough to prepare the market for QE3. We believe that the FOMC statement will sound neutral to dovish but Bernanke will be holding a press conference after the monetary policy announcement this month and he will undoubtedly be asked some tough questions about QE3. 

http://www.fx360.com/commentary/kathy/7441/usd-why-this-fomc-meeting-is-so-important.aspx