US Dollar Index (DX): COT Report, Price & Analysis DX

About the US Dollar Index (DXY)

The US Dollar Index (DXY) is a macro benchmark that measures the value of the United States Dollar against a weighted basket of six major global currencies: Euro (57.6%), Japanese Yen (13.6%), British Pound (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.2%), and Swiss Franc (3.6%).

Primary Usage

The DXY is the premier tool for institutions and funds to express a broad macroeconomic view on the strength or weakness of the US economy relative to the rest of the developed world. A rising DXY indicates broad Dollar appreciation.

Market Dynamics & Key Drivers

• Federal Reserve Policy: Aggressive interest rate hikes by the Fed attract global capital seeking yield, driving the Index higher.
• Eurozone Weighting: Because the Euro constitutes over half the basket, weakness in the European economy alone can drive the Dollar Index significantly higher.
• Global Reserve Currency Status: During severe global crises, the world rushes to the liquidity of the US Dollar, causing the DXY to spike regardless of domestic US economic fundamentals.