The Dollar Index is at its lowest level since December; what does it mean?
It's a strange day-the dollar is usually inversely correlated to the stock market-that is, on days when the dollar is weak, equities and commodities usually get a lift.
That isn't happening today. What's up?
There are two broad trends:
1) investors are moving out of dollar-denominated deposits and investing overseas, and
2) investors are looking for higher-yielding investments in general, many of which are outside the U.S.
But the more immediate story is that Standard and Poor’s cut its outlook for debt in the U.K. to negative for the first time, so the U.K. now joins Portugal, Spain, Greece and Ireland with a negative outlook.