Macro | Fundamental
DXY (Dollar Index)
"The US Dollar Index measures the value of USD against a basket of major currencies. It is the barometer of dollar strength and an essential macro indicator."
In-Depth Definition
The DXY (US Dollar Index) is a geometrically weighted index measuring the US dollar's value against a basket of six currencies: the euro (EUR, 57.6% weight), Japanese yen (JPY, 13.6%), British pound (GBP, 11.9%), Canadian dollar (CAD, 9.1%), Swedish krona (SEK, 4.2%), and Swiss franc (CHF, 3.6%). It trades continuously in forex markets and is a major reference for assessing overall dollar strength. A rising DXY generally means downward pressure on USD-denominated commodities (gold, oil), emerging market equities, and cryptocurrencies. Conversely, a weak DXY tends to be favorable to these assets.
StarQuant Insight
StarQuant integrates the DXY into its macro analysis to identify cross-market correlations and assess the global environment favorable or unfavorable to different asset classes, particularly commodities, crypto, and emerging markets.
Pro Tip
Look at the DXY on the weekly timeframe to identify macro dollar trends. A strong technical resistance on the weekly DXY can coincide with a strong support on gold or crypto. These cross-market confluences are often the most powerful setups.