USDX (USDX) is an index that comprehensively reflects the exchange rate of the US dollar in the international foreign exchange market. It is used to measure the degree of exchange rate change of the US dollar against a basket of currencies. By calculating the comprehensive change rate of the US dollar and a selected basket of currencies, the strength of the US dollar is measured, which indirectly reflects the changes in US export competitiveness and import costs.
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 established at 1870, which was originally composed of cotton merchants and middlemen. Now 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 its financial department.
According to the Bretton Woods system established by 1944, the US dollar is the most important international reserve currency. The dollar is directly linked to gold, and the currencies of all countries are linked to the dollar. The official price is $35 1 ounce, which can be exchanged for gold from the United States. This is what we usually call the gold standard, that is, all countries' currencies are based on gold. However, due to the revival of Europe and Japan, the Vietnam War, in which many countries bought gold with dollars, worsened the economic situation in the United States.
Why does the dollar have such a strong influence on the price of gold and silver?