The US Dollar Index is heading back under the 82 mark once again which in turn will prop up commodity prices including crude oil and gold whilst global stock markets remain on highs, it’s going to be interesting to see what direction the US dollar will take next. Latest Dollar Index Rates The ICE US Dollar Index, which tracks the greenback against a basket of six major world currencies including the euro and sterling was at 81.895, 09:02 GMT this morning on the ICE Futures Exchange. Next Direction – Dollar Index The Dollar Index has remained well above the 80 mark for several months and recently hit 83. This months slide to the upper 81′s just shows how uncertain investors have become in the currency market, mainly due to last week’s euro zone interest rate cut which would have, if anything boosted the appeal of the greenback. Next direction, well we would guess that holding out around 82 is going to be the short term marker. This morning the dollar retreated against most of major currencies and continued falling against the euro as data of Germany’s industrial output beat forecast. The euro rallied to the highest level in a week against the dollar after official data showed German industrial production increased 1.2 percent in March, the second monthly rise in a row. The figure was better than economists’ expectation of a small decline. Dollar and Commodity Prices Expect commodity prices to keep climbing on a weaker Dollar Index as oil, gold and most commodities are traded in the dollar, hence they become cheaper to buy for investors holding other currencies.

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