This morning, the major stock indexes are all trading higher on the back of the weaker U.S. Dollar Index(DXY). Last night, the Chinese made comments that they need to increase the strength of their currency and this is certainly one of the reasons for the weak U.S. Dollar Index today. The major stock indexes are also very oversold in the short term and could be just seeing a short term technical bounce. Over the past week or so, the decline in the U.S. Dollar Index has done very little to help inflate the stock market indexes. This is certainly a change in character from what we have seen over the past month as a weak dollar will generally inflate stock and commodity prices.
This afternoon at 3:45 pm, the Federal Reserve Chairman, Ben Bernanke, is scheduled to speak at an International Monetary Conference in Atlanta, Georgia. Many investors are eagerly awaiting this speech by Chairman Bernanke to see where he stands on the U.S. Dollar and the economy.