Quick
Take
The
DXY
index,
a
measure
of
the
US
dollar’s
value
relative
to
a
basket
of
six
major
currencies,
includes
the
Euro,
Japanese
Yen,
Canadian
Dollar,
British
Pound,
Swedish
Krona,
and
Swiss
Franc.
Notably,
the
Euro
constitutes
57.6%
of
the
index’s
weighting,
followed
by
the
Yen
at
13.6%,
the
Pound
at
11.9%,
the
Canadian
Dollar
at
9.1%,
the
Krona
at
4.2%,
and
the
Franc
at
3.6%,
according
to
Investopedia.
Interestingly,
there
is
typically
an
inverse
relationship
between
the
DXY
and
Bitcoin
(BTC).
Despite
the
DXY’s
high
value,
BTC
is
trading
just
$10,000
below
its
all-time
high
in
2024,
highlighting
BTC’s
resilience
and
strength
in
the
market.
The
DXY
index
is
influenced
by
many
factors,
such
as
positive
US
economic
indicators,
higher
interest
rates
compared
to
other
countries,
lower
inflation
rates,
and
increased
investor
demand
for
dollar-denominated
assets,
reflecting
the
dollar’s
strength
and
attractiveness
as
a
safe-haven
and
global
reserve
currency,
especially
during
economic
uncertainties.
A
value
above
100
indicates
a
strong
dollar,
while
a
value
below
100
suggests
weakness.
Currently,
the
DXY
index
is
trading
around
106,
reflecting
a
robust
dollar.
This
level
is
significant,
as
the
index
has
closed
above
106
for
only
34
trading
days
in
the
past
year.
Go to Source
Author: James Van Straten