US DOLLAR INDEX NEWS


US Dollar Index flirts with daily highs near 99.20, looks to data

The greenback, in terms of the US Dollar Index (DXY), has reversed the initial pessimism and is now flirting with the area of 99.20/30, or daily highs.

Latest US Dollar Index News


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SPECIAL US DOLLAR INDEX YEARLY FORECAST

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Latest US Dollar Index Analysis


Latest US Dollar Index Analysis

Editors' picks

EUR/USD modestly up for the day, still below 1.0900

The EUR/USD pair is trading marginally higher at the end of Wednesday, as panic eased. Nevertheless, concerns about the coronavirus possible effects on economic growth keep investors in cautious mode.

EUR/USD News

GBP/USD pressured under 1.2950 amid Brexit, coronavirus fears

GBP/USD has been unable to recapture 1.2950 as markets are somewhat less worried about coronavirus. The EU's mandate for post-Brexit talks confirmed demands for a level-playing field that the UK rejects.

GBP/USD News

Crypto Today: Bitcoin bears force devastating break of $9000

BTC/USD is currently trading at $8740 (-6.50%), the bears have smashed the big $9000 mark to the downside. 

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Gold surrenders early gains, refreshes session low around $1630 region

Gold surrendered its early modest gains and has now drifted into the negative territory, refreshing session lows around the $1634-335 region.

Gold News

USD/JPY: Lower lows still likely

Coronavirus spreading in Europe keeps investors on their toes. Wall Street set to extend its slump, despite two days of substantial losses. USD/JPY bearish as long as below 110.65, a Fibonacci resistance level.

USD/JPY News

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Cryptocurrencies

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Fed

FED News

FED ANALYSIS


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.