The US Dollar was largely out of the spotlight Monday. Its’ index against a basket of currencies edged very marginally higher to end in New York at 94.20 but after a dull session in Asia overnight it has moved steadily lower; mirroring the strength of the Single European Currency which is back to USD1.17 for the first time in almost three weeks.
The good news for the USD yesterday was that early weakness in equity index futures was reversed and a 10-point loss for the S+P 500 turned into a net 5 point gain by the close. “Buy the Dip” was alive and well. The problem is that the market is going to have to repeat that feat today, albeit on a smaller scale. Futures markets are indicating a loss of around 3 points before the opening bell. On the US economic data front, the latest NFIB survey of small businesses was pretty upbeat. It noted, “The Index of Small Business Optimism gained 0.8 points to 103.8 in October, maintaining a streak of robust readings. Four of the 10 Index components posted a gain, 5 declined and one was unchanged.
Labor market indicators point to continued good jobs reports and job openings surged to record territory”. Will it be enough, though, to help the USD and stock market reverse their early losses?