DXY DOLLAR INDEX US Dollar IndexCAPITALCOM:DXYShavyfxhubWhat is the DXY? The DXY (U.S. Dollar Index) is a weighted index that measures the value of the United States dollar (USD) relative to a basket of six major foreign currencies: the euro (EUR), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK), and Swiss franc (CHF). The euro has the largest weight in the index, around 57.6%, making it the most influential currency in the DXY. The DXY provides a broad gauge of the USD’s international value and is frequently used by traders and analysts to assess dollar strength. Correlation of DXY with US10Y (U.S. 10-Year Treasury Yield) The U.S. 10-year Treasury yield (US10Y) and the DXY often have a positive correlation. Higher US10Y usually signals stronger U.S. economic growth and/or expectations of higher Federal Reserve interest rates, making U.S. Treasury securities more attractive to investors. This leads to increased demand for USD, causing the DXY to strengthen. Rising yields increase the return on dollar-denominated assets, attracting capital inflows and boosting the dollar’s value relative to other currencies. Conversely, when US10Y falls, it often indicates weaker economic sentiment or looser monetary policy, which tends to weaken the dollar and lower the DXY. Strength of the U.S. Dollar and DXY Relationship The DXY directly reflects the strength or weakness of the U.S. dollar in the global forex market. A rising DXY means the USD is strengthening against other major currencies, indicating increased purchasing power and greater global dollar demand. A falling DXY implies the USD is weakening, reducing its relative value versus other currencies. The DXY is impacted by the interest rate differentials, economic growth expectations, geopolitical events, and risk sentiment affecting capital flows in and out of the U.S. The DXY is a key barometer for the dollar’s relative strength, and its movement often aligns with changes in US10Y due to the economic and yield attractiveness IF THE INDEX CORRECTS IN THIS WEEKLY CANDLE EXPECT A LONG POSITION . WATCH EURUSD,AUDUSD,GBPUSD,USDJPY. #DXY #US10Y