Dollar Sliding to a new 15 Month Low

Published on Wednesday, 11 November 2009 10:51 Written by Christopher Lynn

New York, Nov 11 (TradersHuddle.com) - The US Dollar Index (.DXY) was under pressure once again, as it dipped below its floor at 75, which has been set as the last line in the sand for the Dollar Bulls.

With the move below 75, the greenback is accentuating its downtrend that started last March, and has been in a direct inverse correlation of 0.958 with the overall uptrend of the market, which has been rising due to the help of appreciating commodities and energy prices.

 Also the marquee currency pair of EUR/USD broke strongly above 1.50, which is signaling higher commodity and oil prices to come.

The move today is helping the markets, as the S&P 500 was able to break resistance at 1,101, with a strong lead by commodity and energy related stocks.

Gold is also higher on the Dollar decline, and stocks like Freeport-McMoran Copper & Gold Incorporated (NASDAQ: FCX) continue to climb off its March Lows.