Skip to content

US Dollar Index USDX

While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. 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.

  1. The U.S. Dollar is the world’s reserve currency, and as such usually maintains high demand.
  2. Two ETFs here are the WisdomTree Bloomberg US Dollar Bullish ETF (USDU) and the Invesco DB US Dollar Index Bullish Fund (UUP).
  3. Dollar Index expresses the value of the dollar in relation to a basket of currencies.

The result gives you the value of the USDX index.

The Fed’s favoured measure of inflation on tap “the PCE deflator“

President Richard Nixon effectively ended this agreement in the early 1970s when he announced the value of the dollar would no longer be based on gold. From there, countries were free to “float” their currencies and allow markets to determine their value. Dollar Index was established by the Federal Reserve in 1973, the U.S. dollar was pegged to the price of physical gold, and the world’s currencies accordingly against the dollar. This system was facilitated by the 1944 Bretton Woods Agreement in which major world leaders agreed to physical gold as the basis for U.S. dollars, and then weighted the world’s other currencies. 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.

This fundamental information helps me understand what reports and indicators the economists of the world believe will shape future events. By Karen Brettell NEW YORK (Reuters) -The U.S. dollar index was on track for its first weekly fall in 2024 on Friday as investors took a breather from buying the currency… The US dollar index stabilized around 103.8 in the latter part of February, supported by strong January inflation data and the market’s reluctance to anticipate interest rate cuts…– Most Asian currencies fell on Monday, while the dollar regained some ground as investors hunkered down before a barrage of cues on interest rates and U.S. inflation…

Weakening US Dollar and Safe-Haven Demand Keep Gold Price ElevatedThe gold (XAU) price rose by 0.57% on Friday as the US dollar continued to weaken after a strong 2-month… We expect an above-consensus 0.4% core PCE read on Thursday, which should support the dollar this week. Eurozone inflation numbers will also be in focus. Many factors will affect how the USDX moves. Inflation or deflation of any currency, monetary policy, geopolitical conflicts, and export/import ratios, just to name a few.

USD: In the Dollar We Trust

Gold lost its traction and retreated to the $2,030 area after edging higher toward $2,040 earlier in the day. The benchmark 10-year US Treasury bond yield stays below 4.3% ahead of 2-year and 5-year Treasury note auctions, helping XAU/USD hold its ground. Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion. This browser is no longer supported at MarketWatch.

Week Ahead: What are markets watching this week?

USDX futures trade for 21 hours a day through ICE. Index futures can react to both national and international economic data, as well as other reports that relate to the strength of the dollar or other currencies. We are an independent, advertising-supported comparison service.

For the best experience, please update to a modern browser. Create a list of the investments you want to track. Investors can also buy and sell options on ETFs that track the index, giving them a leveraged way to profit on price changes in the ETF. One way is to trade the USDX through ETFs or mutual funds. Dollar “pairs” at the same time, you would trade the index, which would rise and fall in line with the overall sentiment regarding the U.S.

Prior to this, Mercedes served as a senior editor at NextAdvisor. JOHANNESBURG (Reuters) -The South African rand weakened on Friday, extending the previous day’s losses to hit its lowest level since October, with analysts citing the impact of… The U.S. Dollar Index – abbreviated USDX – is the value of the U.S. dollar measured against a group of six foreign currencies. Just as a stock index measures the value of a basket of securities, the U.S. Dollar Index expresses the value of the dollar in relation to a basket of currencies. As the dollar gains strength, the index goes up and vice versa.

The U.S. Dollar is the world’s reserve currency, and as such usually maintains high demand. The strength of the dollar can be considered a temperature reading of U.S. economic performance, especially regarding exports. The greater the level of exports, the higher the demand for fxtm broker review U.S. dollars to purchase American goods. Mercedes Barba is a seasoned editorial leader and video producer, with an Emmy nomination to her credit. Presently, she is the senior investing editor at Bankrate, leading the team’s coverage of all things investments and retirement.

The offers that appear on this site are from companies that compensate us. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional. is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site.

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. DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. Futures allow traders to hedge their accounts against currency risk and fluctuation in the U.S. Dollar or to simply wager that the index will move in one direction or the other.

Two ETFs here are the WisdomTree Bloomberg US Dollar Bullish ETF (USDU) and the Invesco DB US Dollar Index Bullish Fund (UUP). To track the value of the dollar in this new world, the Federal Reserve set up the U.S. When the U.S. dollar is used as the base currency in the example above, the exponent’s value is positive, such as with the Japanese Yen, Canadian Dollar, Swedish Krona and Swiss France. When the U.S. dollar is the quoted currency, the exponent’s value will be negative such as with the Euro and British Pound.

Leave a Comment