USDX is an indicator that comprehensively reflects the exchange rate of the US dollar in the international foreign exchange market, and is used to measure the degree of exchange rate change of the US dollar against a basket of currencies. It measures the strength of the US dollar by calculating the comprehensive change rate of the US dollar and a selected basket of currencies, thus indirectly reflecting the changes in the US export competitiveness and import costs. The rise of the US dollar index (US dollar exchange rate) indicates that the exchange rate between the US dollar and other currencies has risen, that is, the US dollar has appreciated. Then the major international commodities are denominated in US dollars, and the corresponding commodity prices should fall. The appreciation of the dollar is beneficial to the whole economy of the country, enhancing the value of the national currency and increasing purchasing power. However, it also has an impact on some industries, for example, import and export industries. Currency appreciation will increase the price of export commodities, thus affecting the export commodities of some companies. If the US dollar index falls, the opposite is true.
the calculation principle of p>USDX futures is to calculate the overall strength of the dollar in a weighted way based on the trade settlement between major countries in the world and the United States, with 1 points as the dividing line. After the introduction of the euro on January 1, 1999, the subject matter of this futures contract was adjusted from 1 countries to 6 countries, and the euro also became the most important and weighted currency, accounting for 57.6%. Therefore, the fluctuation of the euro has the greatest influence on the strength of USDX.
Currency index weight (%)
Euro 57.6 yen 13.6 pound 11.9 Canadian dollar 9.1 Swedish kronor 4.2 Swiss franc 3.6.
The current USDX level reflects the average value of the US dollar relative to the benchmark in 1973. Up to now, the US dollar index (US dollar exchange rate) has soared to 165 points, and it has also been as low as 8 points. This change characteristic is widely compared with the futures stock index in quantity and change rate.