USD Index / US Dollar Index


US Dollar Index is a trading pair that tracks the value of U.S. dollar to other major currencies. U.S. dollar is the base currency and others are compared to it on base of their price. To put it simply, it is a modified value of the US dollar currency compared to others.

More About USD Index / US Dollar Index

Continue reading to learn more about:

What does the US dollar index consist of?
What is the US dollar index doing today?
What causes the value of the US dollar to rise or fall?
How does DXY affect USD pairs?
What is an index?


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What does the US dollar index consist of?


The US dollar index is an index that has gained popularity because it is comprised of the currencies of America's trading partners. It provides a reference point as to how well the US dollar is performing against other major currencies. Essentially, if the US dollar is gaining value and strengthening, then many of the other currencies are losing ground in comparison.


 
 

What is the US dollar index doing today?


The US Dollar Index, also known as the DX or dollar index, is a measure that tracks the performance of the U.S. dollar against a basket of foreign currencies. It is used by investors and traders to gauge how well the U.S. dollar is performing relative to other currencies and what it will likely do next.

 

What causes the value of the US dollar to rise or fall?

There are several factors that can affect the value of the dollar. How much someone wants to buy or sell and how many dollars they have to spend determine the demand for dollars.
Supply is determined by the amount of dollars available in the market as well as the amount of other currencies available in the market.A combination of these elements helps decide the value of a dollar at a certain point in time.
 
  • How does DXY affect USD pairs?

    The US dollar index is a measure of how the U.S. currency is faring relative to the currencies of other nations. It's technically known as a "weighted basket of currencies." The dollar index may offer insight into how traders feel about the dollar in the short term and is often used as a barometer for USD strength (or weakness) on any given day when USD-related news is released or during periods when the Federal Reserve releases new information, with implications for interest rates and QE.
  • What is an index?

    Indexes, also known as indices, are statistical tools that measure some characteristic of the data set. They are used especially for measuring changes in the economy and for comparing performance between groups. It is used by market traders and economic analysts to forecast changes in the U.S. dollar's exchange rates with other major currencies such as the euro, yen, and British pound.