The DXY Index is often used by traders to monitor the value of the USD in comparison to a basket of select currencies in a single transaction. It also allows them to hedge their bets against any risks https://www.tradebot.online/ with respect to the dollar. The US Dollar Index (DXY) serves as a benchmark for measuring the relative value of the American dollar to a basket of currencies of the US’s key trading partners.
We look at some of the significant takeaways from the event, discuss China’s current economic conditions, and analyse the China A50. We discuss the four factors pushing Bitcoin higher and analyse the technicals of the cryptocurrency’s technicals. The US Dollar Index was introduced by the US Federal Reserve in 1973 after the dismantling of the Bretton Woods Agreement. The constituents of the foreign currency basket were altered only once when several European currencies were subsumed by the euro in early 1999. Calculate your hypothetical P&L if you had opened a CFD trade on a certain date (select a date) and closed on a different date (select a date).
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The index’s value is indicative of the dollar’s value in global markets. The company reports its Q4 results after the closing bell on Wednesday, the 21st of February. We preview what to expect from Nvidia’s earnings and analyse the technicals of its stock price. A few macroeconomic factors have a significant impact on the US Dollar Index price.
These include, among others, inflation and deflation in the US dollar and foreign currencies included in the comparable basket, as well as economic growth and recessions in the respective countries. 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. The US Dollar Index spot price increases when the USD exchange rate strengthens its position in comparison to other currencies. The euro holds the most weight versus the dollar in the index, making up about 57.6 per cent of the weighting, followed by the yen with around 13.6 per cent. China’s National People’s Congress (NPC) is underway, and the markets have so far been disappointed by what’s been delivered by the country’s central government.