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The five main factors affecting the movement of the dollar index

{}Posted in2023/2/26 6:00:12 | 5Browse

The five ma cashbackforexexness factors affecting the movement of the Forex rebate for Exness forexrebates Most of the commodities in the international commodity market are denominated in U.S. dollars, so commodity prices forexcashrebate the dollar index into a more obvious negative correlation dollar index chart (U.S. dollar index real-time quotes): the dollar index and the U.S. real interest rates have a positive correlation, when the dollar or U.S. bond funding yields after excluding the inflation factor When there ForexrebateforExness still this more objective return, the dollar often becomes an important asset sought after by the market, the reason why the dollar has such a high real rate of return during this period, on the one hand, because the U.S. federal funds rate is higher, or because of the lower inflation rate within its economy When high interest rates and low inflation coexist, the performance of the dollar index is more eye-catching, such as from 1995 to 2001 the dollar index A bull market, on the contrary, if inflation is high, then the money prefers cashback forex or commodities to achieve personal wealth preservation, because investors in times of inflation generally expect prices to continue to rise, and now the wisest way is to sell their hands of currency or bonds with strong liquidity in exchange for commodities to avoid the next greater shrinkage of their wealth by the above chart we can see that in Of course, you can also use another way of thinking to explain this phenomenon, that is, the FED injected a lot of liquidity into the market, resulting in a flood of liquidity 3, the dollar index and the euro exchange rate movements of the relationship between the dollar index is fundamentally a series of exchange rates a weighted index, so ultimately reflected in the strength of the United States and its major trade currencies freely convertible currency in the dollar index composition of the currency basket, the euro is the heaviest weight of a currency, the movement of the euro has naturally become an important influence with the dollar index The recent financial turmoil caused by the U.S. subprime crisis has had an important impact on the eurozone, the eurozone economy for two consecutive quarters of negative growth, but earlier than the United States into recession, which also became investors bearish euro and thus prompted the dollar to soar an important factor 4, the dollar index and the relationship between gold price movements when the dollar index is down gold is up, and gold down when the dollar index is often In the way up, gold and the dollar in most of the year is negatively correlated why the dollar can be so strong influence the gold price? This mainly has 3 reasons: 01, the dollar is the pillar of the current international monetary system, the dollar and gold with the most important reserve assets, the dollars strength and stability has weakened the status of gold as a reserve asset and value preservation function 02, the United States GDP still accounts for the worlds GDP 1/4 strong, total foreign trade world first, the world economy by its influence, and gold prices are generally good or bad with the world economy into 03, the world gold market is generally priced in U.S. dollars, so the depreciation of the dollar will inevitably lead to a rise in gold prices, for example, the end of the 20th century, gold prices into the trough, people have to sell gold, and the U.S. economy for 100 consecutive months to maintain growth, the dollar is strong relationship 5, the dollar index and the relationship between the dollar trend dollar index USDX is a comprehensive reflection of the dollar in the international foreign exchange market exchange rate situation It is used to measure the degree of change in the exchange rate of the dollar against a basket of currencies. It measures the strength of the dollar by calculating the integrated rate of change of the dollar and against a selected basket of currencies, thus indirectly reflecting the competitiveness of U.S. exports and changes in the cost of imports. If the dollar appreciates, then the price of the corresponding commodity should fall, which is good for the countrys economy as a whole, raising the value of its currency and increasing its purchasing power.