The dollar index is not from Chicago Board of Trade (CBOT) or Chicago Mercantile Exchange (CME), but from new york Cotton Exchange (NYCE). New york Cotton Exchange was founded in 1870, which was originally composed of a group of cotton merchants and middlemen. At present, it is the oldest commodity exchange in new york and the most important cotton futures and options exchange in the world. 1985, new york cotton exchange established the finance department, and officially entered the global financial commodity market. The first is the US dollar index futures.
The rise of the dollar index means that the exchange rate between the dollar and other currencies has risen, that is, the dollar has appreciated. Then the major international commodities are denominated in dollars, and the corresponding commodity prices should fall. The appreciation of the dollar is beneficial to the country's overall economy, raising the value of its currency and increasing its purchasing power. However, it also has an impact on some industries, such as export. Currency appreciation will increase the price of export commodities, so it will have an impact on the export commodities of some companies. If the dollar index falls, the opposite is true.
The rise of the dollar will inevitably lead to the continued decline of gold and oil prices, and the decline of the dollar will inevitably lead to the rebound of gold and oil prices. Therefore, we saw the end of QE3 in the United States at the end of last year, and then the US dollar index was boosted by the expectation of raising interest rates in the United States, and it rose all the way, while the prices of commodities such as gold and oil continued to fall.