US Dollar Index (USDX, US Dollar Index)
What is the dollar index?
USDX Dollar Index (US Dollar Index) - introduced in 1973 by the U.S. Federal Reserve and is a comparison of a basket of six major world currencies to the U.S. dollar.
What currencies are included in the dollar index?
The dollar index includes:
- Euro - 57.6 %;
- Yen - 13.6 %;
- Pound Sterling - 11.9 %;
- The Canadian dollar is 9.1 %;
- Swedish krona - 4.2 %;
- Swiss franc - 3.6 %.
Changes in the exchange rate of each of these currencies affect the value of the U.S. dollar index, which is constantly updated on weekdays.
How to use the USDX dollar index on ?
The dollar index can be used to analyze currency pairs in the market, just as stock market investors use stock indices as an underlying contract to determine the general trend direction of the market.
If you trade currency pairs that have the dollar in their quotes, the USDX will give an idea of the relative strength of the dollar in currency pairs like EUR/USD, GBP/USD, USD/CHF, etc. and will give a clearer picture of the market.
It is safe to say that the USDX has correlation with the above-mentioned currency pairs and this indicator can be used by the trader as an additional indicator when analyzing the market.
Also, a rise or fall in the USDX is a good clue as to what the dynamics of other currencies will be, whether they are part of the index or not.
The dollar index chart can be found on specialized resources or directly in the trading terminal MetaTrader 4.
Read more about how to use the dollar index in trading on