In this section, you will find important information on the US dollar index: news, actionable trading ideas, and a live DXY chart. All of which will help you understand the markets better.
USD is the financial abbreviation for the United States dollar. As its name suggests, it is the official currency used by the United States of America and its territories since the Coinage Act of 1792. It is governed by the Federal Reserve, otherwise known as the Fed. The Federal Open Market Committee (FOMC) is the board that decides on monetary policy.
Related currencies: USDMXN – USDNOK – USDRUB – USDSEK.
Most of the world’s currency reserves are in US dollars. This is why it is also dubbed as the global currency. The Bretton Woods System allowed countries to pegged their currencies to the US dollar. Consequently, central banks all over the world accumulated the currency in their vaults to help stabilize their economies after the Second World War.
It is then no surprise that among all currencies on the spot FX market, the US dollar is the most heavily traded. Its performance is often tracked through the US dollar index, with the most popular being the DXY index. It measures the value of the US dollar against a basket of 6 currencies. Namely, the following make up the basket: the euro makes up a huge percentage of it at 57.6%, followed by Japanese yen at 13.6%, the British pound is in third at 11.9%, the Canadian dollar makes up 9.1%. Meanwhile, the Swedish krona and Swiss franc make up the smallest portion of the basket at 4.2% and 3.6%, respectively.
More Related currencies: USDCAD – USDCHF – USDCNH – USDINR – USDJPY.
The DXY was introduced in 1973 when the Bretton Woods System was no longer in effect. The US dollar index also makes it easier for forex traders to see the general performance of the US dollar without needing to check its chart against its counterparts individually. It can also be used as a leading indicator. For instance, the DXY may already be testing a major resistance level. A forex trader can then use the information to look for potential trades to sell the US dollar against the yen or the euro, for example.
Bitcoin, Ripple, and Ethereum prices attempted to bounce back during the Asian session as investors rushed to buy the dips after yesterday’s turmoil. The three major cryptocurrencies are down by 4.12%, 0.90%, and 1.35% in the past 24 hours. Subsequently, the market cap of all cryptocurrencies has dropped to $517 […]
The dollar index continues its descent and the greenback is now testing the 92.00 support level which halted the decline into September. If the USD cannot find buyers here then there is a risk of further steep losses.
Asia-Pacific equities are mixed today, a day after their American counterparts fell by more than 1%. In Japan, the Nikkei 225 index has dropped by 0.52% while in Australia, the ASX 200 index has risen by more than 0.25%. In Hong Kong, the Hang Seng index is down by more […]
The dollar index was lower by 0.35% after Retail Sales from the U.S. economy missed expectations. Traders were expecting a drop in retail sales to 0.5% from 1.9% in the previous month, but the actual number was 0.3%.
The US Dollar index was trading near unchanged after the latest inflation figures from the U.S. economy showed a slightly softer tone in prices. This will be a boost for the Federal Reserve as the numbers are still higher than many other developed nations but not moving too fast towards […]
The US Dollar Index (DXY) has been able to stall the decline below 92.00, but bearish pressure persists as the greenback trades at 2-month lows on the day. At the moment, US election uncertainty seems to have eased, and this is promoting risky sentiment that is depressing the US Dollar. […]
The US dollar index (DXY) is rising today as traders wait for nonfarm payroll numbers from the United States. The index is up by 0.10% and is trading at $92.62, which is still closer to this week’s low of $92.50. In general, it has risen by 0.30% against the Canadian […]
The US dollar index is moving lower as the country’s election picture remains unclear. Today also sees a Federal Reserve interest rate announcement. The latest development in the election has been the calling of Michigan and Wisconsin for Joe Biden. This means that Biden is closer to a win but […]
