USDX (United States Dollar Index)

USDX (United States Dollar Index) is a measure used to track and monitor the value of the US Dollar. It is an index that compares the performance of the US Dollar against a basket of other major currencies. Here is more detailed information about USDX:

1. Formation: USDX was created in 1973. It was established to track and compare the value of the US Dollar against other currencies. USDX calculates the value of the US Dollar against six major currencies, which are the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc.

2. Calculation: USDX uses a weighting system to calculate the value of the US Dollar against other currencies. This weighting system is based on the trade volume of the US Dollar and its trade relationship with other countries. Each currency has a specific weight in the index, and these weights are used in the calculation of the index.

3. Index Value: The initial value of USDX is set at 100. This value was determined in March 1973. The value of USDX increases or decreases based on the changes in the value of the US Dollar against other currencies. For example, if the value of USDX is 101, it means that the US Dollar has gained 1% in value against other currencies.

4. Usage: USDX is used by market participants such as investors, speculators, and central banks to track and evaluate the overall performance and value of the US Dollar. Additionally, USDX is used in the valuation of futures contracts based on the US Dollar.

USDX is an index used to measure and track the performance of the US Dollar against other currencies. It serves as an important tool to assess the strength and value of the US Dollar in global markets. However, the value of USDX can fluctuate based on the relationship of the US Dollar with other currencies.