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US Dollar Index confusion

  • #1
  • First Post: May 16, 2013 11:56pm May 16, 2013 11:56pm
I want to start using a US Dollar Index to help with correlation.

But I'm confused with a few things... I know a US Dollar Index is based on the strength of the USD vs a basket of other currencies, but that is where my knowledge stops.

My broker offers futures based Index CFDs over a typical US Dollar Index (but I'm not sure what 'typical' US Dollar index is - that's the problem). Specifically they offer the DX (ICE Dollar Index).

So two questions.

1) What is the difference between DX and USDX and DXY?? I've seen it referred to as all three. Are they different indices? Futures vs spot vs something else??

2) Is the DX (what my broker offers) very different from the standard US Dollar Index? I want to be able to see the 'strength' or 'weakness' of the dollar on a chart.

Thanks!
  • #2
  • May 17, 2013 12:04am May 17, 2013 12:04am
I should have done more research my self

This is from the ICE website:

"The ICE U.S. Dollar Index (USDX) futures contract is a leading benchmark for the international value of the US dollar and the world's most widely-recognized traded currency index. In a single transaction the USDX enables market participants to monitor moves in the value of the US dollar relative to a basket of world currencies"

So my broker lists it as the DX (ICE Dollar Index) but the actual website lists it as the USDX. So I guess they are the same thing. And I'm hoping its what is 'typically' referred to as the US Dollar Index.

So now the only question what is the DXY?? Same thing again?
  • #3
  • May 17, 2013 12:39am May 17, 2013 12:39am
http://www.bloomberg.com/quote/DXY:CUR
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  • #4
  • May 17, 2013 2:40am May 17, 2013 2:40am
Thanks for the chart Gumrai, but I'm not sure what you're trying to explain with that?
  • #5
  • May 17, 2013 2:52am May 17, 2013 2:52am
Just that Bloomberg states it is a spot price chart
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  • #6
  • May 17, 2013 8:08am May 17, 2013 8:08am
Oh ok. So USDX and DX are futures (same thing just different symbols sometimes) and DXY is spot. That makes sense.

Does anyone know if the futures and spot differ by much? Will they both show the 'strength' of the US Dollar?
  • #7
  • Mar 11, 2019 5:45am Mar 11, 2019 5:45am
Even though this is an old thread but I think it's still a good discussion thread. I am also confused about the dollar index and how it gets its value. Let me further elaborate to show the confusion. I have two Forex accounts, one with markets.com and another with xm.com
The dollar index on xm.com platform is called USDX-MAR19 and as of this writing the value is 97.27
where on markets.com it's called Dollarindex and the value is 96.77

What I do not understand is the big difference in value. Can anyone explain why the values are so much different and which of these two reflect the actual Dollar strength?
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  • #8
  • Mar 11, 2019 6:08am Mar 11, 2019 6:08am
Quoting bbk1
Even though this is an old thread but I think it's still a good discussion thread. I am also confused about the dollar index and how it gets its value. Let me further elaborate to show the confusion. I have two Forex accounts, one with markets.com and another with xm.com The dollar index on xm.com platform is called USDX-MAR19 and as of this writing the value is 97.27 where on markets.com it's called Dollarindex and the value is 96.77 What I do not understand is the big difference in value. Can anyone explain why the values are so much different...
one is a futures contract the other is not that is why they are different
  • #9
  • Mar 11, 2019 7:01am Mar 11, 2019 7:01am
Quoting EcoTrader
{quote} one is a futures contract the other is not that is why they are different
Thanks for the response but which is which? What was interesting in my case was that last week and before they were both running the same price but suddenly on the close of Friday the Dollarindex on markets.com spiked down while the USDX-MAR19 on xm.com platform remained the same and is still high compared to Dollarindex on Markets.com. I had only 4 shortopen positions with Dollarindex while I had 23 short mini lot positions on USDX-MAR19.... and to be frank for a moment I thought I was being cheated by the broker for USDX-MAR19
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  • #10
  • Mar 11, 2019 7:04am Mar 11, 2019 7:04am
Quoting bbk1
{quote} Thanks for the response but which is which? What was interesting in my case was that last week and before they were both running the same price but suddenly on the close of Friday the Dollarindex on markets.com spiked down while the USDX-MAR19 on xm.com platform remained the same and is still high compared to Dollarindex on Markets.com. I had only 4 shortopen positions with Dollarindex while I had 23 short mini lot positions on USDX-MAR19.... and to be frank for a moment I thought I was being cheated by the broker for USDX-MAR19
the one with the date in the name is the futures instrument. They don't mirror each other - it is a futures contract so accounting for the future price of the DXY
  • #11
  • Last Post: Mar 11, 2019 7:28am Mar 11, 2019 7:28am
Quoting EcoTrader
{quote} the one with the date in the name is the futures instrument. They don't mirror each other - it is a futures contract so accounting for the future price of the DXY
Appreciate your kind response and help. Thanks a million mate
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