US Dollar Index (DXY) Definition

The US Dollar Index measures the value of the U.S. dollar relative to a basket of major foreign currencies.

What is the US Dollar Index?

It is widely used as a general gauge of dollar strength or weakness across global markets.

The index is weighted most heavily toward the euro, reflecting its large share in the underlying currency basket.

A rising DXY generally indicates the U.S. dollar is strengthening against the basket of currencies it tracks.

The underlying asset is the financial instrument on which a derivative's price is based.

Unrealized profit and loss is the current gain or loss on an open position that has not yet been closed.

An uptrend describes a sustained upward movement in an asset's price, characterized by higher highs and higher lows.