The US Dollar Index spot price increases when the USD exchange rate strengthens its position in comparison to other currencies. The gold bull market continued to take the leading precious metal to new record highs in late 2023. In early 2024, gold prices have pulled back from the highs but remain above the $2,000 level. The dollar index tracks the relative value of the U.S. dollar against a basket of important world currencies.

  1. Simply put, if the USDX goes up, that means the U.S. dollar is gaining strength or value when compared to the other currencies.
  2. Data may be intentionally delayed pursuant to supplier requirements.
  3. These financial products currently trade on the New York Board of Trade.
  4. After trading below the 100 level in July and above 107 in October, the index has not moved much as stability returned to the dollar against…
  5. The New Highs/Lows widget provides a snapshot of US stocks that have made or matched a new high or low price for a specific time period.

It is possible to incorporate futures or options strategies on the USDX. The USDX is based on a basket of six currencies with different weightings (see above). The index calculation is simply the weighted average of the U.S. dollar exchange rates against these currencies, normalized by an indexing factor (which is ~50.1435).

The value of shares and ETFs bought through a share dealing account can fall as well as rise, which could mean getting back less than you originally put in. You can follow the ups and downs of the Dollar Index at Capital.com. Always stay on top of the latest price developments with our DXY live chart.

New Highs/Lows only includes stocks traded on NYSE, NYSE Arca, Nasdaq or OTC-US exchanges with over 5 days of prices, with a last price above $0.25 and below $10,000, and with volume greater than 1000 shares. The New Highs/Lows widget provides a snapshot of US stocks that have made or matched a new high or low price for a specific time period. Stocks must have traded for the specified time period in order to be considered as a new High or Low. The Barchart Technical Opinion widget shows you today’s overally Barchart Opinion with general information on how to interpret the short and longer term signals. Unique to Barchart.com, Opinions analyzes a stock or commodity using 13 popular analytics in short-, medium- and long-term periods. Results are interpreted as buy, sell or hold signals, each with numeric ratings and summarized with an overall percentage buy or sell rating.

The U.S. dollar index (USDX) is a measure of the value of the U.S. dollar relative to a basket of foreign currencies. Federal Reserve in 1973 after the dissolution of the Bretton Woods Agreement. It is now maintained by ICE Data Indices, a subsidiary of the Intercontinental Exchange (ICE). A few macroeconomic factors have a significant impact on the US Dollar Index price.

The 10-Year Treasury Yield Came Close to 5%. What That Means for Stocks, Gold, and More.

DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. An overvaluation of the USD led to concerns over the exchange rates and their link to the way in which gold was priced. President Richard Nixon decided to temporarily suspend the gold standard, at which point other countries were able to choose any exchange agreement other than the price of gold. In 1973, many foreign governments chose to let their currency rates float, putting an end to the agreement. The U.S. dollar index allows traders to monitor the value of the USD compared to a basket of select currencies in a single transaction. It also allows them to hedge their bets against any risks with respect to the dollar.

The euro is the pan-European currency that changed the foreign exchange market at the turn of this century. The dollar index measures the U.S. currency against the other leading reserve currencies. Interest rate differentials are the most significant factor for the… For instance, the Invesco DB U.S. Dollar Index Bullish Fund (UUP) is an ETF that tracks the changes in value of the US dollar via USDX future contracts. The Wisdom Tree Bloomberg U.S. Dollar Bullish Fund (USDU) is an actively-managed ETF that goes long the U.S. dollar against a basket of developed and emerging market currencies. ICE provides live feeds for Dow Futures that appear on Bloomberg.com and CNN Money.

The bearish trend in the U.S. dollar index took it from a twenty-year high in September 2022 to below the 100 level in July 2023. After probing under the psychological level, the index has recovered as… Data are provided ‘as is’ for informational purposes only and are not intended regresion y clasificacion for trading purposes. Data may be intentionally delayed pursuant to supplier requirements. The U.S. Dollar Index has risen and fallen sharply throughout its history. Over the last several years, the U.S. dollar index has been relatively rangebound between 90 and 110.

The index is affected by macroeconomic factors, including inflation/deflation in the dollar and foreign currencies included in the comparable basket, as well as recessions and economic growth in those countries. The company reports its Q4 results after the closing bell on Wednesday, https://forexhero.info/ the 21st of February. We preview what to expect from Nvidia’s earnings and analyse the technicals of its stock price. At the end of 2019, the DXY traded at 96.5, meaning that the US dollar has slightly depreciated versus the basket of currencies since its establishment in 1973.

Dollar rises after Powell says March cut is unlikely

The dollar index has gone to sleep in a 103 to 104 trading range. After trading below the 100 level in July and above 107 in October, the index has not moved much as stability returned to the dollar against… The euro is, by far, the largest component of the index, making up 57.6% of the basket. The weights of the rest of the currencies in the index are JPY (13.6%), GBP (11.9%), CAD (9.1%), SEK (4.2%), and CHF (3.6%).

USDOLLAR further reading

Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples.

US Dollar Index

The dollar has support from lowered expectations for Fed rate cuts as the chances for a Fed rate cut at the April 30-Mai FOMC meeting dropped to 23% from 75% a month ago. Similarly, if the index is currently 80, falling 20 from its initial value, that implies that it has depreciated 20%. The appreciation and depreciation results are a factor of the time period in question. For the major indices on the site, this widget shows the percentage of stocks contained in the index that are above their 20-Day, 50-Day, 100-Day, 150-Day, and 200-Day Moving Averages. Gold made an ominous bearish technical pattern when it made a double-top, reaching $2,072 per ounce in March 2022 and May 2023. Since the latest peak, the price action turned bearish, with the precious…

Trade US Dollar Index – DXY CFD

Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts. An index value of 120 suggests that the U.S. dollar has appreciated 20% versus the basket of currencies over the time period in question. Simply put, if the USDX goes up, that means the U.S. dollar is gaining strength or value when compared to the other currencies. In the coming years, it is likely currencies will be replaced as the index strives to represent major U.S. trading partners. It is likely in the future that currencies such as the Chinese yuan (CNY) and Mexican peso (MXN) will supplant other currencies in the index due to China and Mexico being major trading partners with the U.S. The index started in 1973 with a base of 100, and values since then are relative to this base.

It was established shortly after the Bretton Woods Agreement was dissolved. As part of the agreement, participating countries settled their balances in U.S. dollars (which was used as the reserve currency), while the USD was fully convertible to gold at a rate of $35/ounce. This is to be expected since the average includes data from the previous, lower priced days. As long as prices remain above the average there is strength in the market.

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