This morning around 7:00 am EST the U.S. Dollar Index sold off sharply as the European Central Bank(ECB) hinted at raising interest rates. This caused the Euro currency to increase sharply higher. Traders and investors can follow or trade the CurrencyShares Euro Trust(NYSE:FXE) as this ETF will certainly be in play today. Generally, when the U.S. Dollar Index declines the major stock market indexes will inflate and trade higher.
Today, is also options expiration, therefore, it is prudent to expect some volatility during the first hour or two of the trading session. Usually, after the first couple of hours the market will become very quiet. Monday is the President’s Day holiday in the United States. Many traders and investors will often leave the trading session early on a Friday before the holiday. Friday’s are often a flat to slightly higher trading session and that is what we shall expect today as trading volume should be very light.
Nicholas Santiago
InTheMoneyStocks.com