- September 6, 2022
- Posted by: Stratford Team
- Category: Economy
Daniel Grizelj
The dollar index measures the US currency against other world reserve currencies. While the index includes the euro, British pound, Japanese yen, Canadian dollar, Swedish krona, and Swiss franc, the moves in the euro versus the US dollar exchange rate dominate the index. The dollar index has a 57.6% weighting to the euro versus the dollar currency pair.
The current bullish trend in the dollar index began in early 2021 when the index reached a bottom at 89.165. Since then, the index has made higher lows and higher highs, reaching nearly the 110 level on September 1, 2022. Currency trends often last for years, and the bullish trend in the US dollar continues to take it to new multi-year highs as we head toward 2022’s final months.
The Invesco DB USD Bullish Fund (NYSEARCA:UUP) moves higher and lower with the index, while the UDN product operates inversely.
New two-decade highs in the dollar index
The dollar index futures contract reached a…
