USDX is an index showing the ratio of the US dollar to a basket of six major currencies: Euro (EUR), Yen (JPY), Pound Sterling (GBP), Canadian Dollar (CAD), Swedish Krona (SEK) and Swiss Franc (CHF).
The index is calculated as the geometric weighted average of these currencies according to the formula:
where the power coefficients correspond to the weights of the currencies in the basket:
- Euro - 57.6%;
- Yen - 13.6%;
- Pound Sterling - 11.9%;
- Canadian dollar - 9.1%;
- Swedish Krona - 4.2%;
- Swiss franc - 3.6%.
The first coefficient in the formula leads the index to 100 at the start date of the countdown - March 1973, when the main currencies began to be freely quoted against each other.
Trading on the dollar index (as on a commodity contract ) goes around the clock on the IntercontinentalExchange .
- Euro Index