US DOLLAR INDEX Forecast and News

USD Index: Next on the downside emerges the 2023 low

DXY retreats for the third session in a row and prints new monthly lows in the 103.40/35 band on Monday.

Latest US Dollar Index News

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Latest US Dollar Index Analysis

Latest US Dollar Index Analysis

Editors' picks

EUR/USD continues to trade in positive territory above 1.0700

EUR/USD continues to trade in positive territory above 1.0700

EUR/USD has managed to stay in positive territory above 1.0700 despite having retreated modestly in the early American session. ECB President Lagarde reiterated that inflation in the Eurozone is projected to remain too high for too long, helping the Euro keep its footing.


GBP/USD rises to fresh multi-week highs above 1.2250

GBP/USD rises to fresh multi-week highs above 1.2250

GBP/USD has gathered bullish momentum and advanced to its highest level since mid-February above 1.2250 on Monday. The US Dollar struggles to find demand following a mixed opening in Wall Street and allows the pair to cling to its daily gains.


USD/JPY recovers a few pips from over a one-month low, finds some support near mid-130.00s

USD/JPY recovers a few pips from over a one-month low, finds some support near mid-130.00s

The USD/JPY pair retreats over 200 pips from the daily swing high and drops to its lowest level since February 10 during the first half of the European session on Monday. Spot prices, however, manage to rebound a few pips in the last hour and currently trades around the 131.00 mark, still down over 0.60% for the day.


Gold falls below $1,980 as US yields rebound

Gold falls below $1,980 as US yields rebound

Gold price has turned south and dropped below $1,980 after having rallied to a fresh multi-month high of $2,010 earlier in the day. The 10-year US Treasury bond yield has turned positive on the day near 3.5% following the sharp decline seen in the European session and weighed on XAU/USD.

Gold News

WTI falls below $67 on the pessimism of banking contagion

WTI falls below $67 on the pessimism of banking contagion

West Texas Intermediate (WTI) price fell below the $67 mark despite reassurance from major central banks. A likely case of banking contagion is unfolding. Credit Suisse fell apart. Later on, UBS was urged to acquire the troubled bank.

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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.


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.


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.