US Dollar Index DXY Forecast, News and Analysis

what is the dollar index today

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Eurozone PMI sounds the alarm about growth once more

There’s a very narrow path where the dollar can weaken, and that happens usually when China, relative to trend, is doing better than the US. Despite the better-than-expected numbers in the first quarter in China, we are still not seeing that. And again, geopolitical risks need to disappear from the map, but everything indicates that between now and the US elections, geopolitical risks will remain. The US dollar index, which measures the currency’s strength against six of its peers, closed Tuesday at 106.26, its highest level since early November.

  1. The markets are discounting the chances at 53% for a -25 bp rate cut at the December FOMC meeting.
  2. Please bear with us as we address this and restore your personalized lists.
  3. The appreciation and depreciation results are a factor of the time period in question.

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. A thumbnail of a daily chart is provided, with a link to open and customize a full-sized chart. The Barchart Technical Opinion rating is a 56% Buy with a Strongest short term outlook on maintaining the current direction. The various market sectors are showing an interesting reaction to news the US is moving forward with a second Donald Trump administration.

The index calculation is simply the weighted average of the U.S. dollar exchange rate against these currencies, normalized by an indexing factor (which is ~50.1435). The exponent figures following the currency pairs are the weightings (see above). The data weighed heavily on the Euro (EUR) – the main foreign currency forming the DXY – as it atfx trading platform could mean more interest rate cuts ahead by the European Central Bank (ECB) in order to support growth. The USDX can be a proxy for the health of the U.S. economy and traders can use it to speculate on the dollar’s change in value or as a hedge against currency exposure. The Quote Overview page gives you a snapshot view for a specific index. New delayed trade updates are updated on the page as indicated by a “flash”.

what is the dollar index today

The US economic calendar did not bring much to the table, after the US Purchase Managers Index (PMI) release for November became even more important after the European ones were released this Friday. All US PMI numbers were a small upbeat surprise on expectations and confirmed that the US is outpacing the Eurozone again. Seeing the elevated move already on the day, markets did not really piled back into the Greenback as seen earlier this Friday. While logged into the site, you will see continuous streaming updates to the chart. This fundamental information helps me understand what reports and indicators the economists of the world believe will shape future events. The US dollar, meanwhile, continued its surge on Friday, with the dollar index rising to an intraday high of $108, representing its highest level since November 2022.

The index is also available to investors indirectly as part of exchange-traded funds (ETFs) and mutual funds. It is likely that the currencies in the index will change again, as the index adapts to better represent those countries that the U.S. buys from and sells to most. That happened in 1999 when the newly-created euro replaced several European currencies previously in the index, such as Germany’s predecessor currency, the deutschmark. How to buy empire token It reached an all-time high in 1984 at nearly 165, and an all-time low of around 70 in 2007. In the years since then, the U.S. dollar index has been relatively range bound, fluctuating between 90 and 110.

The USDX can provide investors and consumers with insight into the relative strength of the dollar and how it might affect prices for goods and services as well as demand for imports and exports. 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 markets are discounting the chances at 53% for a -25 bp rate cut at the December FOMC meeting.

Suddenly, there is increased chatter about an expected FOMC rate cut in September due to government statistics. It seems most of the industry forgot about what the markets have been saying for months. The US dollar index measures the performance of the dollar against a basket of currencies. A rising dollar serves as a profit headwind for US companies that generate revenue overseas, as sales in other currencies are eventually converted into fewer dollars.

Pound, gold and oil prices in focus: commodity and currency check, 13 November

Traders use the U.S. dollar index to track the value of the USD against a basket of select currencies in a single transaction. They can also protect against currency risks using tradable derivatives of the index, such as USDX futures and options. Similarly, an index value of 80, indicating a fall of 20 from its initial value, implies a 20% depreciation in strength relative to the other currencies.

What does a central bank do when inflation undershoots or overshoots its projected target?

The chairman will deliver speeches which often can be followed live, where the current monetary stance and outlook is being communicated. A central bank will try to push forward its monetary policy without triggering violent swings in rates, equities, or its currency. All members of the central bank will channel their stance toward the markets in advance of a policy meeting event. A few days before a policy meeting takes place until the new policy has been communicated, members are forbidden to talk publicly. Exactly what parts of forex broker rating his economic agenda Mr Trump will want—and be able—to implement is not yet clear. But the giddiness in America’s stockmarkets gives clues as to what investors expect (the S&P 500, an index of large American firms, hit successive records on November 6th, 7th and 8th).

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