The U.S. Dollar Index futures (DX U1) plummeted lower after the second quarter gross domestic product(GDP) number was released. Normally, when the U.S. Dollar Index declines it will help to inflate the major stocks and commodity markets, however, today could be a different scenario. Stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Cliffs Natural Resources Inc.(NYSE:CLF), and Southern Copper Corp.(NYSE:SCCO) are coming under early selling pressure despite the decline in the U.S. Dollar Index.
At this time, the inverse relationship between the U.S. Dollar Index and the major stock market indexes may not be intact. The stock markets are confused as the failed U.S. debt ceiling deal out of Washington remains in limbo. Traders should watch for any kind of news from the politicians, any indication of a debt ceiling deal could cause the markets to bounce intra-day. Traders should realize that the U.S. Dollar Index futures will have some short term intra-day support around the $74.00 area.