The USD Index’s (DXY) bullish move, which followed Wednesday’s consumer price index data, has lost momentum after Fed officials moved...
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The DXY was introduced in 1973 when the Bretton Woods System was no longer in effect.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.
The US Dollar Index (DXY) maintained its bullish recovery position after the US Dollar got some significant push from the...
The USD Index (DXY) retreated to 3-month lows after disappointing NFP numbers showed that US employment is yet to recover...
The USD Index (DXY) was able to get some uplift from today’s private-sector jobs numbers in the US. According to...
The USD Index is trading lower today, following the adoption of risk-on sentiment in the markets and disappointing ISM Manufacturing...
The USD Index fell steeply on Wednesday, giving up all the earlier gains of the day as the FOMC doused...
Speculation that the FOMC may deliver a timetable for the tapering of its QE program when it ends its meeting...
The USD Index held on to marginal gains on the day, after the Consumer confidence index in the US showed...
The US Dollar Index was little changed this Thursday after data from the Department of Labor showed a reduction in...
The USD Index has weakened further on the day and has plunged 0.61% as the greenback remains on offer for...