🔍What you need to know about the DXY index🤔
🔍DXY INDEX (USDX) displays the value of USD against a basket of six foreign currencies: EUR, JPY, GBP, CAD, SEK, CHF.
This index is calculated on the basis of the weighted average ratio of USD to six currencies.
➡️ EUR —> 57,6%
➡️ JPY —> 13,6%
➡️ GBP —> 11,9%
➡️ CAD —> 9,1%
➡️ SEK —> 4,2%
➡️ CHF —> 3,6%
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❗️Interesting note❗️
Given the fact that the EUR is included in the DXY (the largest weight in the index, so it is not surprising that the DXY and EURUSD are highly correlated), the dollar index is the currency of the member countries of the EUR zone.
➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖
The index was created by JPMorgan Chase, which officially released this trading instrument to the market in 1973. The level of 100 was taken as the base value. The index was not subject to any changes, except for the introduction of EUR in Europe.
DXY allows you to form an idea of the value of the USD and its weight in the world. In addition, this index may signal a recession in the world: the rapid growth of DXY indicates that market participants prefer to withdraw their investments in cash, i.e. in USD, and in moments of economic instability, buy US bonds with these USD.
🔴Thus, the index is used as a separate speculative trading instrument in the market, and also serves as an indicator that allows you to determine current financial trends.
This index is calculated on the basis of the weighted average ratio of USD to six currencies.
➡️ EUR —> 57,6%
➡️ JPY —> 13,6%
➡️ GBP —> 11,9%
➡️ CAD —> 9,1%
➡️ SEK —> 4,2%
➡️ CHF —> 3,6%
➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖
❗️Interesting note❗️
Given the fact that the EUR is included in the DXY (the largest weight in the index, so it is not surprising that the DXY and EURUSD are highly correlated), the dollar index is the currency of the member countries of the EUR zone.
➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖
The index was created by JPMorgan Chase, which officially released this trading instrument to the market in 1973. The level of 100 was taken as the base value. The index was not subject to any changes, except for the introduction of EUR in Europe.
DXY allows you to form an idea of the value of the USD and its weight in the world. In addition, this index may signal a recession in the world: the rapid growth of DXY indicates that market participants prefer to withdraw their investments in cash, i.e. in USD, and in moments of economic instability, buy US bonds with these USD.
🔴Thus, the index is used as a separate speculative trading instrument in the market, and also serves as an indicator that allows you to determine current financial trends.
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