DXY (U.S. Dollar Index)

DXY (U.S. Dollar Index) measures the dollar against a basket of six currencies: euro (57.6%), yen, pound, Canadian dollar, Swedish krona and Swiss franc. Launched in March 1973 from a base of 100, and because the euro dominates the weighting, its moves are effectively an inverted EUR/USD chart (correlation near -0.95). Traders use it mainly to confirm broad dollar strength or weakness.