Normally when the U.S. Dollar index declines the markets inflate and rally. Today that is not occurring and shows how powerful deflation really is. The U.S. Dollar index has sold off by 1.38 to $84.63. While this is a huge drop in the U.S. Dollar it not really inflating many commodity stocks. Today many of the major commodity names are still trading lower on the day. However, it is important to note that the markets are off the lows.
Tomorrow is the highly anticipated government job report for the month of June. The report is expected to be very poor as private sector jobs are expected to be limited. We shall see tomorrow if this job report is already baked into the cake. Therefore, one can only wonder if this is a sell the rumor and buy the news scenario.
