The dollar index, which put in a strong performance in the first six months of the year, pulled back from its recent highs and appears to be in defensive mode.
If you are not familiar with the US dollar index (USDX), it is an index, or measure, of the value of the United States dollar relative to a basket of foreign currencies.
Its weighted geometric mean of the dollar's value is compared with these currencies in the following percentages:
* Euro (EUR), 57.6% weight
*Japanese Yen (JPY), 13.6% weight
* Pound sterling (GBP), 11.9% weight
* Canadian dollar (CAD), 9.1% weight
* Swedish krona (SEK), 4.2% weight
* Swiss franc (CHF) 3.6% weight
In this short educational video, I point out what we see in the dollar index and the reason why we think a potential rally may be in the foreseeable future.
As always our videos are free to watch and there is no need for registration.
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All the best,
President of INO.com
Co-founder of MarketClub