When the U.S. Dollar index declines the entire market rallies. The dollar has sold off sharply over the past two days and this has kept the markets bouyant. We can listen to all the reports in the world and there are only two factors that really matter. The first is the U.S. Dollar reaction once the NYSE opens and the second factor is the 10 Year T-note yield. Other than that the market does not care about anything else. Watch the stock indexes if the dollar catches a bid higher.
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).
