The Impact of USD Strength on Global Commodity Markets: A Closer Look at DXY

The value of the US dollar is a critical indicator of the strength of the world’s largest economy. The US Dollar Index, commonly known as DXY, measures the performance of the dollar against a basket of six major currencies. This article examines in more detail the effects of USD strength on international commodity markets as measured by DXY. Understanding DXY DXY is a weighted geometric average of the dollar’s exchange rate against a basket of six major currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc. The calculation methodology involves taking the reciprocal of each currency’s

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