The American dollar is the overall winner this 2018, despite being battered in these last days of the year. The DXY recovered from a yearly low of 88.25 achieved early February to a 17-month high of 97.71 in December, now battling in the mid 96s. Much of dollar strength came from the US Federal Reserve and its tightening policy, two steps ahead of any other central bank. But it also benefited from weakness somewhere else, mostly focused in political trouble in the Old Continent.
US Dollar Index off YTD peaks near 97.40 on data
The greenback is now trading on a volatile fashion, coming down from fresh 2019 highs near the 97.40 region when tracked by the US Dollar Index (DXY) to the current 97.00 neighbourhood.
SPECIAL YEARLY FORECAST
1. Latest News & Analysis
2. Technical Overview
DXY PRICE SENTIMENT
DOLLAR INDEX PIVOT POINTS
3. Fundamental Overview
DXY FUNDAMENTALS TODAY
4. Big picture
The performance of the U.S. Dollar Index (orange line) since December 2015, compared to the performance of the S&P 500 stock index (green line), the Spot Gold price (brown line) and the Dow Jones Utilities Average, a proxy for the U.S. 10-Year Treasuries (inverted). Zoom on the chart to get more history.
BULLISH PERCENT INDEX
The Bullish Percent Index measures how strong a currency is against a basket of other 20 currencies.
For each of these currencies a cross rate is calculated and plotted on a price and figure chart.
It then evaluates how many of these crosses are on bullish mode.
The percentage indicates how bullish that currency was against all the other 20, as of yesterday's close.
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Dollar Index, USDX
HISTORIC HIGHS AND LOWS FOR DOLLAR INDEX
- All-time records: Max: 211799.99 on 01/03/2017 - Min: 28.00 on 08/08/1896
- Last 12 months (March 2016-March 2017): Max: 21799.99 on 01/03/2017 - Min: 15450.06 on 20/01/2016
- Last 5 years (March 2011-March 2016): Max: 21799.99 on 01/03/2017 - Min: 12035.01 on 05/06/2012
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE DOLLAR INDEX
The US Dollar Index news can be seriously affected by the decisions taken by this organizations and people:
- Fed, the Federal Reserve of the United States whose president is Janet Yellen. 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 (and its President Donald Trump): 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.” Its President is Steven Mnuchin.
- 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.
WANT TO LEARN MORE ON 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.
Have you watched the US Dollar Index (USDX) Futures contract trade during the day? Do you notice that with each price change the intervals are always a minimum tick of .005? And then at the end of the day when you look at your daily candle of the USDX you see a closing price like 97.197.
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.