Dollar Index (DXY)
The dollar index measures the US dollar against a basket of six major currencies, with the euro weighted most heavily.
The dollar index (DXY) measures the dollar against six major currencies, with the euro carrying over half the weight. It is the standard gauge of overall dollar strength.
The US Dollar Index (DXY) measures the dollar against a basket of six currencies: the euro, yen, sterling, Canadian dollar, Swedish krona and Swiss franc, with the euro carrying more than half the weight. It is the standard gauge of overall dollar strength or weakness, and it often moves inversely to gold, commodities and emerging market currencies. Because the euro dominates the basket, DXY sometimes moves on euro-specific news rather than dollar-specific news.
How It Works
- Basket: EUR 57.6%, JPY 13.6%, GBP 11.9%, CAD 9.1%, SEK 4.2%, CHF 3.6%
- Rises when the dollar strengthens across the basket
- Often inversely correlated with gold and commodities
Trading Tips
DXY trend is the cleanest read on whether dollar strength is broad or pair-specific
A DXY move driven by the euro is not necessarily a dollar story
DXY and EUR/USD move in near-perfect mirror because of the basket weight
Related Terms
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