The Fed Will Raise Rates Again in June

Following Friday's slightly better than expected non-farm payroll report the probability of a June interest rate hike is now near one hundred percent. The markets are now certain that a quarter point hike is coming in June and in fact if the Federal Reserve does raise interest rates by a quarter point that will bring the floor of the official rate finally up to 1 percent. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM))

Currencies: U.S. Dollar Index May Drop To 60

The U.S. Dollar can fall rather substantially from here. The last time the Dollar Index fell, it bottomed out around 70. So, I think this time it might fall as low as 60 before anybody really gets nervous. 

The Bullish Case For The Euro Currency

I think the European Central Bank (ECB) is going to move to a tightening rhetoric, to a tightening bias and they may even start to raise interest rates given how quickly the inflation rate is accelarating in Europe!