Those who are new to the currency market often see the US Dollar Index cashbackforexcalculatorOnl cashback forexe its trend analys c cashbackforexprofitcalculatorhback forex calculator Online, so what is the US Dollar Index? What is the significance of the USDX? The full name of the USD cashbackforexpipcalculator in English is USDollarIndex, on MT4 or other mainstream forex trading software, referred to as USDX; simply put, the USD index is similar to the SSE index of Chinese A-shares, the SSE index reflects the comprehensive state of Shanghai stocks, while the USD index reflects the comprehensive performance of the US dollar, a comprehensive indicator to weigh the strength and weakness of various currencies The USD index (USDX ) combines the exchange rates of six high-weighted currencies against the U.S. dollar in March 1973, calculated through the geometric mean weighted value, its original benchmark value of 100.00, then when the U.S. dollar index (USDX) is 110.00, the U.S. dollar relative to its value in March 1973 rose by 10% to date, DollarIndex has been as high as 165 points, and as low as The March 1973 reference point was chosen because it was a historic moment in the foreign exchange market turnaround, when major trading nations allowed their currencies to float freely against another countrys. The agreement was reached at the Smithsonian Institute in Washington, symbolizing the triumph of free trade theorists. The formula for the dollar index is: USDX=50.14348112EURUSD-0.576USDJPY0.136GBPUSD-0.119USDCAD0.091USDSEK0.042USDCHF0.036 The current weighting of each currency is as follows: EUR EUR0.576 JPYJPY0.136 GBPGBP0.119 CAD0.091 SEKSEK0.042 CHFCHF0.036 Using the USDX, we must understand the following: 1. Because the USDX is based only on foreign exchange quotation indicators, it may vary due to the use of different data sources 2. USDX is calculated continuously 24 hours a day, 7 days a week 3. The foreign currencies and weights used in USDX are the same as those used in the US Federal Reserves US Dollar Transaction Weighted Index Similar to watching the SSE Index, the USD Index does not represent the movement of all non-US currencies, and for each currency pair, you as an investor need a more detailed and in-depth understanding and analysis
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