Forex & Macro • Macro Differentials & Central Banks • Intermediate Level

US Dollar Index (DXY)

Definition: The benchmark geometric index measuring the value of the US Dollar relative to a basket of 6 major foreign currencies.

Comprehensive Institutional Breakdown

The Euro comprises 57.6% of the DXY weighting. A strengthening DXY typically correlates with downward liquidity pressure on EUR/USD, commodities, and risk assets including Bitcoin.

Cross-Market & Execution Note
Key macro indicator: when DXY surges, risk assets (Stocks, Crypto, Gold) typically experience liquidity headwinds.