Dollar Index Analysis 2012
For an up to date look at the USD and how it is trading versus its opposing currency major counterparts you can see the weekly dollar index analysis posts that we provide. Some days the dollar is under huge downwards pressure and other days it is in favour on risk aversion flows. One of the best ways of seeing the broad based dollar strength is through the USDX.
The index gives a weighted look at the U.S. dollar against a basket of the following currencies. The heavily weighted Euro (EUR), Japanese Yen (JPY), British Pound sterling (GBP), Canadian dollar (CAD), Swedish krona (SEK) and the Swiss franc (CHF). These are a balanced representation of the forex market currencies that cane traded against the dollar.
Our posts typically focus on the technical analysis elements that could be affecting the dollar over the coming trading sessions. We also reference the commitment of traders reports from the CFTC as these give an insight into how the large speculators are positioned.
Maybe you are asking what is the dollar index? See the linked post and the illustration below for further details. The USDX gives an excellent overview of how the greenback is performing and also provides additional support and resistance references which may not be as obvious when looking at the respective currency crosses.