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Highlights important summary options statistics to provide a forward looking indication of investors’ sentiment. Information is provided ‘as is’ and solely for informational purposes, not for trading purposes or advice. For exchange delays and terms of use, please read disclaimer (will open in new tab). The US Dollar Index spot price increases when the USD exchange rate strengthens its position in comparison to other currencies. Back in October, US dollar longs were the obvious play when the DXY reclaimed 102.60—a key level I highlighted several times. Whether these levels hold through January remains uncertain.
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 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. The index’s value is indicative of the dollar’s value in global markets. The U.S. Dollar Index (DXY) is a measure of the U.S. dollar’s value relative to a basket of six major foreign currencies. The index was established in 1973 with a base value of 100, and it tracks the dollar’s strength or weakness over time.
Investors are closely watching these indicators to assess potential shifts in monetary policy and the broader economic outlook. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. 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.
Traders should monitor inflation data and Fed policy cues for further direction. A downward trendline breakout suggests the new investor’s complete guide to brokers the potential for further downside pressure, keeping sentiment cautious as traders monitor economic data and Federal Reserve policy cues. The dollar index (DXY00) Friday fell by -0.53% and posted a 5-week low.
US Dollar Index
The turn of the calendar page to December marks the beginning of meteorological winter, bringing with it seasonal changes to some markets. Regardless, the safe and liquid options for your emergency fund technical picture of Teucrium CORN, SOYB, and WEAT funds grew more interesting heading into 2025. The commodity complex in general took a breather overnight, not overly surprising given recent moves made by many markets. The University of Michigan US Jan consumer sentiment index was revised downward by -2.1 to 71.1, weaker than expectations of no change at 73.2. The US Jan S&P manufacturing PMI rose +0.7 to 50.1, stronger than expectations of 49.8 and the highest level in 7 months.
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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. 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. 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. As long as the euro stays below these levels on the weekly time frame, I see no reason to adopt a bullish outlook. A bullish breakout above the downward trend suggests buying interest above $1.23459, while failure to hold could drive a sharp selling trend.
- The index was established in 1973 with a base value of 100, and it tracks the dollar’s strength or weakness over time.
- After trading to the bottom end of the range in September 2024, the index challenged the top end of the band,…
- The dollar index (DXY00) Friday fell by -0.53% and posted a 5-week low.
- Inflation expectations remain at 3.3%, adding to market uncertainty regarding future Fed policy.
- Investors are closely watching these indicators to assess potential shifts in monetary policy and the broader economic outlook.
- The author makes no representations as to the accuracy, completeness, or suitability of this information.
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FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.
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- The index was established in 1973 with a base value of 100, and it tracks the dollar’s strength or weakness over time.
- Top website in the world when it comes to all things investing.
- The author makes no representations as to the accuracy, completeness, or suitability of this information.
- Investors are closely watching these indicators to assess potential shifts in monetary policy and the broader economic outlook.
- Read our MELANIA crypto price prediction for 2025 and beyond, with insights from third-party analysts and market experts.
- Inflation expectations remain at 3.3%, adding to market uncertainty regarding future Fed policy.
But range-trading is more likely than a significant downtrend, for now, Societe Genrale’s FX expert Kit Juckes notes. When prices are rising they are usually above the average. 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. The U.S. 10-year Treasury yield is currently at 4.625%, testing resistance near the 50-day EMA at 4.634%, after rebounding from the 4.506% support level. The recent uptick suggests rising expectations of a hawkish Fed stance, which could support the U.S. dollar index (DXY).
US Dollar Index (DXY) – Technical Analysis
All market data (will open in new tab) is provided by Barchart Solutions. Read our MELANIA crypto price prediction for 2025 and beyond, with insights from third-party analysts and market experts. The US Dollar Index was introduced by the US Federal Reserve in 1973 after the dismantling of the Bretton Woods Agreement.
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The author has not received compensation for writing this article, other than from FXStreet. 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. The stage is set for what should be an interesting last trading day of November 2024.
About U.S. Dollar Index
Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold. Today’s BoJ rate hike is a step on the road to normalization, consistent with a less oversold Japanese Yen (JPY). The Dollar Index (DXY) seeing its biggest two-week since August, what is the accelerator oscillator indicator a short forex guide is consistent with the recent phase of dollar strength losing momentum.
The Barchart Technical Opinion rating is a 64% Buy with a Weakest short term outlook on maintaining the current direction. The U.S. dollar index had traded between just under 100 and just over 107 since late 2022. After trading to the bottom end of the range in September 2024, the index challenged the top end of the band,…
