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What's the USD Index?9/27/2020 Image: Matteo Catanese on Unsplash
We often hear the USD is strong, weak, or flat. What does that mean? It's a reference to the USD Index (DXY) which is a weighted measurement against the performance of EUR, JPY, GBP, CAD, CHF, and SEK. EUR is the 57.6% fat guy in that group who at least brings a packed cooler to the cookout. A higher number represents strength and affects fiscal policy accordingly. Last Friday saw DXY at 94.577, a sign of hope based on yet another "stimulus" from the Fed and concerns about the other six currencies. As Clayton told us last week, the US government is running out of options to keep the train rolling. |