USD Index is up from 86.41 to 86.77. Today was one of the unique days, as a massive move happened after the London close, namely between 1 pm est to 4 pm est.
Despite the increase in the USD Index, USD showed weakness across the board today, EUR/USD rallying above 1.2700s following the EUropean close.
USD Index is up from 86.64 to 86.73, in a undirectional day. Slight increase in USD Index provided little support for the USD. Most of the cross pairs closed the day around its values at the open.
The US Dollar Index (USDX) is a futures contract offered by the New York Board of Trade. It is a trade-weighted average of six foreign currencies against the dollar. Currently, the index includes euros (EUR), Japanese yen (JPY), British pounds (GBP), Canadian dollars (CAD), Swedish kronas (SEK) and Swiss francs (CHF).
USDX broadly reflects the dollar's standing compared to the other major currencies of the world. It is widely used to hedge risk in the currency markets or to take a position in the US Dollar without having the risk exposure of a single currency pair.
The US Dollar Index allows the fx trader a feel for what is going on in the FX market globally at a glance. If the Dollar Index is trending lower, then it is likely that a major currency that is a component of it is trading higher.
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