US DOLLAR INDEX Forecast and News


US Dollar Index: Next downside target is at the 91.30 area

The leg lower in DXY gathers extra steam after breaking below the 92.00 mark on quite a convincing fashion, exposing at the same a deeper pullback.

Latest US Dollar Index News


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Latest US Dollar Index Analysis


Latest US Dollar Index Analysis

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EUR/USD retains gains near the 1.2000 threshold

The EUR/USD pair advanced for a third consecutive day, holding near a daily high at 1.1986. Dollar bears leading the way higher ahead of US Retail Sales, employment data.

EUR/USD News

GBP/USD holds on to daily highs near 1.3800

The broad dollar’s weakness helps GBP/USD recover some ground, although the pound is among the worst performers. Britain's successful vaccination campaign supports sterling.

GBP/USD News

USD/JPY extends sideways grind around 109.00

After closing the first two trading days of the week in the negative territory, the USD/JPY pair turned quiet and continues to fluctuate in a relatively tight range on Wednesday.

USD/JPY News

Gold stays depressed below $1,750 amid mixed sentiment

Gold holds lower grounds after the previous day’s downbeat performance. The yellow metal dropped for three days in the last four even as the DXY remains dismal around a one-month low. US dollar weakness tests the bears amid dull markets.

Gold News

WTI pops to 2-week highs around $61.50 ahead of EIA

Prices of the barrel of the West Texas Intermediate advance to new 2-week highs beyond the $61.00 mark on Wednesday.

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FED News

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DOLLAR INDEX, USDX

The U.S. Dollar Index (USDX) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies. These currencies are the Euro (constituting 57.6% of the weighting), Japanese Yen (13.6%), British Pound (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.2%) and Swiss Franc (3.6%). The index started in 1973 -with the absolution of Bretton Woods- with a base of 100.000, and values since then are relative to this base. For example, if the current reading says 99.800, this means that the dollar has fallen 0.2% since the start of the index (99.800 - 100.000).
Being the Dollar Index a geometrically weighted index and not a trade-weighted one, it is too concentrated in Europe and does not include two of the U.S. top four trading partners Mexico and China. It does not appear to be used by corporates or many asset managers, like mutual funds, insurance companies, and endowments. It is primarily a speculative vehicle. It's also important to acknowledge that a geometric mean artificially lowers the value of the USD over time.

ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE DOLLAR INDEX

The US Dollar Index news can be seriously affected by the decisions taken by these organizations and people:

  • Fed, the Federal Reserve of the United States whose president is Jerome Powell. The Fed controls the monetary policy, through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.
  • The US Government: events as administration statements, budget, new laws and regulations or fiscal policy can increase or decrease the value of the Dollar Index.
  • The US Treasury Dept that defines its role as “the steward of U.S. economic and financial systems, and as an influential participant in the world economy.”
  • US GDP (Gross Domestic Product), the total market value of all final goods and services produced in the United States of America. It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the Dollar Index, while a low reading is negative.

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The US Dollar Index

When I write the Online Trading Academy Forex newsletter, I give my opinion about what I believe is happening to the currencies of the world based on the news I hear, the experts I follow, and my personal experiences of the economic cycles I have seen in the past. This fundamental information helps me understand what reports and indicators the economists of the world believe will shape future events.

A Look at the US Dollar Index

Over the last few months especially, there’s been a lot of focus in the world of Currency Trading upon the state of the US Dollar. No matter what your opinion is of the Greenback, it is still, without question, regarded as the world’s primary reserve currency and holds its weight of recognition across the board.