Several major factors affecting the trend of the dollar index
- 2023/2/25 22:50:42
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forex trading session times cashback forex chart (dollar index real-time quotes): the dollar index forextradingtime the United States real interest rates there forextradingmarket a positive correlation, when the dollar or U.S. bond funding yields after excluding the inflation factor there is this more objective return, the dollar tends to become an important asset sought after by the market, the reason why the dollar has such a high real rate of return during this period, on the one hand Because the U.S. federal funds rate is high, or because of its economy within the lower inflation rate when high interest rates and low inflation coexist, the dollar index performance is more eye-catching, such as from 1995 to 2001, a bull market in the dollar index on the contrary, if inflation is very high, then the funds prefer gold or commodities to achieve the preservation of personal wealth, because investors in inflationary periods The most sensible way now is to sell your currency or bonds with strong liquidity for commodities to avoid a greater shrinkage of your wealth. Of course, you can also use another way of thinking to explain this phenomenon, that is, the FED injected a lot of liquidity into the market, resulting in a flood of liquidity, triggering the dollar devaluation and commodity bull market relationship between the dollar index and the euro exchange rate movement of the dollar index is fundamentally a series of exchange rates a weighted index, so ultimately It is still reflected in the strength of the United States and its major trade currencies freely convertible currency in the dollar index composition of the basket of currencies, the euro is the most heavily weighted a currency, the movement of the euro has naturally become an important influence with the dollar index recent financial turmoil triggered by the U.S. subprime mortgage crisis has had an important impact on the eurozone, the eurozone economy for two consecutive quarters of negative growth, but earlier than the United States Step into recession, which also became investors bearish euro and thus prompted the dollar to soar an important factor of the dollar index and the relationship between the price of gold the dollar index down when gold is rising, and gold down when the dollar index is often on the way up, gold and the dollar in most of the time throughout the year is negatively correlated why the dollar can be so strong impact on the price of gold? This mainly has 3 reasons: 01, the dollar is the pillar of the current international monetary system, the dollar and gold with the most important reserve assets, the dollars strength and stability has weakened the status of gold as a reserve asset and value preservation function 02, the United States GDP still accounts for the worlds GDP 1/4 strong, the worlds total foreign trade, the world economy by its influence, and gold prices are generally good or bad with the world economy into 03, the world gold market is generally priced in U.S. dollars, so the depreciation of the dollar will inevitably lead to a rise in the price of gold, for example, the end of the 20th century, gold prices into the trough, people have to sell gold, and the U.S. economy for 100 consecutive months to maintain growth, the dollar is strong relationship between the dollar index and the relationship between the dollar trend dollar index USDX is a comprehensive reflection of the U.S. dollar in the international foreign exchange market exchange rate situation of the indicator. It is used to measure the degree of change in the exchange rate of the U.S. dollar against a basket of currencies. It measures the strength of the U.S. dollar by calculating the combined rate of change of the U.S. dollar and against a selected basket of currencies, thus indirectly reflecting the competitiveness of U.S. exports and changes in the cost of imports The dollar index rises, indicating that the ratio of the U.S. dollar to other currencies rises, which means that the dollar appreciates, then the major international commodities are denominated in U.S. dollars, then The appreciation of the dollar is good for the whole economy of the country, it raises the value of the national currency and increases the purchasing power, but it also has an impact on some industries, for example, the export industry, where the appreciation of the currency raises the price of export goods and therefore has an impact on the export goods of some companies.