The rise of the US dollar index means that the exchange rate between the US dollar and other currencies has risen, which means that the US dollar has appreciated. Therefore, major international commodities are denominated in US dollars, and the corresponding commodity prices should fall. The appreciation of the US dollar is beneficial to the overall national economy, enhancing the value of the national currency and increasing purchasing power. However, it also has an impact on some industries, such as import and export industries. Currency appreciation will increase the price of export commodities, which will affect the export commodities of some companies. If the dollar index falls, the opposite is true.
Most commodities in the international commodity market are denominated in US dollars, so the price of commodities is negatively correlated with the US dollar index. What happened when the euro appreciated and the dollar index fell?
The dollar index is basically a weighted index of a series of exchange rates, so it is ultimately reflected in the strength of freely convertible currencies between the United States and its major trading currencies. The euro is the most important currency in the basket of currencies formed by the US dollar index, and the trend of the euro naturally becomes an important factor affecting the US dollar index.