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 Forex Analysis
16

Understanding the US Dollar Index


The US dollar index (USDX Chart and Analysis) is an important analytical tool for traders in just about any market. Most investors don't actually trade the USDX, but use it as way to analyze the relative strength or weakness of the US Dollar versus the major world currencies.The USDX compares the US dollar (USD) against a basket of other world currencies. This basket represents most of the largest free floating, major currencies in the world on a weighted average basis. The currencies included are the euro, yen, British pound, Canadian dollar, Swedish krona and Swiss franc. Each of these currencies are given a weight with the largest weight given to the euro.

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Categories: US Dollar, EURUSD

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