LTG GOLDROCK will share with you what the US dollar index is ~
In the initial involved in the foreign exchange market, investors often use an indicator to measure the strength of various currencies, that is, the US Dollar Index & Reg, USDX).The US dollar index is similar to the Dow Jones Industrial Average, which shows a comprehensive state of US stocks. The US dollar index represents the comprehensive value of the US dollar.
The US dollar index is calculated by reference to the geometric average weighted value of the exchange rate of the US dollar exchange rate in March 1973, and measures its value based on 100.00 points.Value increased by 5.50%.
In March 1973, the US dollar index was selected as a reference point, because it was a historic moment of turning in the foreign exchange market at the time. From then on, the main trading countries allowed the local currency to be freely and foreign currency.The agreement was reached by Smithsonian Institution at Washington, symbolizing the victory of free trade theorists.The Smithsonian Agreement replaced the fixed exchange rate system reached by the Breton Forest in New Bushle in 1948.
The US dollar index is a comprehensive reflecting the exchange rate of the US dollar in the international foreign exchange market, which is used to measure the exchange rate change of the US dollar on a basket of currencies.It measures the strength of the US dollar by calculating the comprehensive change rate of the US dollar and the selected basket of currencies, which indirectly reflects the US export competitiveness and changes in import costs.If the US dollar index falls, the US dollar depreciates to other major currencies.The US dollar index is 7 days a week and is calculated 24 hours a day.
The principle of calculation of the US dollar index futures is based on the trade settlement volume between major countries around the world and the United States, calculating the overall strength of the US dollar in a weighted manner, and using 100 points as a strong and weak boundary.After the euro was launched on January 1, 1999, the target of this futures contract was adjusted. From 10 countries to 6 countries, the euro also became the most important and authoritarian, and its weight reached 57.6%.The yen is 13.6%, the pound is 11.9%, the Canadian dollar is 9.1%, the Swedish Crane is 4.2%, and the Swiss franc is 3.6%.Therefore, the euro fluctuations have the greatest impact on the strength of the US dollar index.
