It is a currency so universal and so widely-spread that there is no wonder that we have already gotten used to the fact that we measure everything in and against it. All of the world economies are focused on the valued of their currencies in USD.
But what if I tell you that USD is itself being weighed against other currencies. And its performance against other currencies can heavily influence its popularity with traders all around the world.
Yes. With so many indices we shouldn’t really be surprised that dollar has its very own index at hand – USDX. The index is measuring the performance of the greenback against a mysterious basket of six major currencies. And even though you as treads have probably already heard such things, have you ever stopped and smelled the roses thought what kind of currencies are in this basket?
Well, here they are:
Canadian dollar () (9.1%)
In total 254 countries are playing against the greenback in this game with Eurozone as you can see providing more than a half of the whole firepower here. Some of traders even go as far as saying that it is the index that measures dollar performance against EUR. But we all know enough to say that it is not entirely true, do we?
So, USDX – our new topic!