June 4 (Tue): 【Harmonic】 Nikkei 225 VS Dollar Index

Good morning.

This time, after a long absence,

“Dollar Index”

I would like to take a look at a comparison with it.

【What is the Dollar Index?】

The Dollar Index (US Dollar Index, DXY) is an index that measures the value of the U.S. dollar against a basket of major foreign currencies.

It was introduced in 1973 by ICE (Intercontinental Exchange) and is widely used in foreign exchange markets around the world.

【Constituent Currencies】

It measures the value of the dollar against six major currencies below.

This currency basket is calculated as a weighted average that forms the basis of the Dollar Index:

1. Euro (EUR): About 57.6%
2. Japanese Yen (JPY): About 13.6%
3. Pound Sterling (GBP): About 11.9%
4. Canadian Dollar (CAD): About 9.1%
5. Swedish Krona (SEK): About 4.2%
6. Swiss Franc (CHF): About 3.6%

※ More than half is euro, so if you mirror euro-dollar charts, you will get a chart that is almost the same as the Dollar Index.

【Calculation Method】

The Dollar Index is calculated by taking a weighted average of the values of these currencies against the dollar. Each currency is weighted based on its country's economic size and its trade volume with the United States. The specific calculation is based on exchange rate movements since the base year (1973).

【Role and Uses】

The Dollar Index serves the following purposes and roles:

1. Economic Indicators: Used as an economic indicator of the dollar's strength or weakness, to assess the health of the U.S. economy, inflation rate, and the impact of monetary policy.
2. Investment Decisions: Used by investors and traders as a reference in foreign exchange markets, international trade, and risk management of investments.
3. Currency Policy: Used as reference data when central banks and governments decide on exchange-rate policies.

The Dollar Index is one of the important indicators in financial markets and is widely used to evaluate the relative value of the dollar. In financial news and economic reports, movements of the Dollar Index are often discussed, and its fluctuations can trigger market reactions.

【About issues with the newsletter】

● Images in the newsletter crackle.

● Font size and text color change automatically.

These phenomena are occurring.

Therefore, for a while I plan to write without emojis or color.

There is no change in content, so please understand…

（※The following is for members only.）