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USD

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.
What is USD?
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The DXY was introduced in 1973 when the Bretton Woods System was no longer in effect.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.

US Dollar Index Breaks Support Level and Could Be Heading to 92.00

Forex
Dollar Rallies, A Second Thought for July Fed Cut?

Dollar Rallies, A Second Thought for July Fed Cut?

Forex

US Fed Richmond Manufacturing Index Is Better Than Expected

Indices
USDMXN

US Dollar Index: $94 Target Remains Elusive After Non-Farm Payrolls Data

Indices

US Dollar Index Maintains Slow March Towards 94.00

Forex
USDSEK

US Index Extends Intraday Slide Below 91.00 On Disappointing ISM Manufacturing PMI Data

Forex
USDSEK

Are Election Projections Starting to Weigh on the USD Index As It Trades Below 94.00?

Indices
USDSEK

Record US Coronavirus Daily Increase Drives USD Index (DXY) Higher

Indices
US Dollar Looking For Direction Above 96

US Dollar Looking For Direction Above 96

Forex

Morning Brief: US Dollar Index (DXY) Woes Deepen – Down For 5 Straight Months

ForexMarket Brief
Ripple price

Ripple Price Corrects as the USD Bounces Back from the Lows

Cryptocurrencies
US dollar index

Week Ahead: Will the NFP data surprise us again?

ForexMarket Brief
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Trading and investing in financial markets and cryptocurrencies involve high risk, with potential losses exceeding deposits. Content on InvestingCube is for general market commentary only and not investment advice. Risk Disclosure Statement

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    • About Us
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