This morning the U.S. Dollar Index is starting the session slightly higher. As we all know when the U.S. Dollar Index trades higher the stock markets will usually deflate. This is evident at the open of the New York Stock Exchange as many commodity stocks are trading slightly lower. Cliffs Natural Resources Inc.(NYSE:CLF), and United States Steel Corp.(NYSE:X) are two leading commodity stocks that are trading lower this morning at the open. Please understand that if the U.S. Dollar Index declines the commodity stocks are usually the first to catch a bid higher.
It is important to remember that since June 7th, 2010 the U.S. Dollar Index has sold off by more than 10.0 percent. Therefore, the U.S. Dollar Index is extremely oversold and due for some type of short term technical bounce. However, nearly everyday that the U.S. Dollar Index starts out strong it sells off and the major stock market indexes rally. We shall see how the U.S. Dollar Index will hold up today.
