DXY DOLLAR INDEXU.S. Dollar Currency IndexTVC:DXYShavyfxhubTHE dollar index closed the week at 98.211,one thing worthy of note is the 3month structure holding support from 3month ascending trendline and demand floor at 96.168.the path to upswing is open on 3months chart and the target could be 113.721 and extension could be 125.293 close of the yearly candle trade projection based on market structure, while break out of the 96.168 from the ascending trendline could mean a retest of 78 zone on the descending trendline from 3month chart break and retest structure as illustrated on the chart what is dollar index ?? dollar index is the measures the value of the U.S. dollar (USD) against a basket of six major foreign currencies. What DXY actually measures It is a weighted geometric average of the USD’s exchange rate versus the euro (EUR), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK), and Swiss franc (CHF). The index was created in 1973 and is maintained by the Intercontinental Exchange (ICE), so traders often refer to it as “ICE Dollar Index” or simply DXY. How to interpret DXY A rising DXY means the dollar is generally strengthening against these six currencies; a falling DXY means the dollar is weakening. The index is normalized to 100 in 1973; values above 100 indicate a stronger dollar vs. that baseline, and values below 100 indicate a weaker dollar. Why it matters for traders FX, commodity (e.g., gold, oil), and equity traders watch DXY because a stronger dollar tends to pressure gold and emerging‑market assets, while a weaker dollar can support risk‑on markets. In practical terms, when you see “DXY rallying”, it usually means the USD is gaining versus most major currencies, and that can influence how pairs like EUR/USD, USD/JPY, or USD/CAD move DXY (U.S. Dollar Index), US10Y (U.S. 10‑year Treasury yield), and the Fed’s policy rate (federal funds rate) are tightly linked channels through which U.S. monetary policy drives both FX and bond markets. 1. How the Fed rate affects DXY and US10Y When the Fed raises rates, U.S. dollar‑denominated assets become more attractive (higher risk‑free return), so DXY tends to strengthen as capital flows into the USD. Higher Fed rates also usually push up US10Y, because short‑term policy rates set the “floor” for longer‑term yields; in practice 10‑year yields often move in the same direction as the Fed fund rate, though the spread fluctuates. There is a positive correlation between US10Y and DXY: higher U.S. yields tend to support a stronger dollar, because investors chase higher‑yielding USD assets and demand for USD rises. However, this correlation can break down when markets price in growth concerns or risk‑off events (e.g., recession fears): US10Y may fall but DXY can still rally if the dollar is acting as a safe‑haven. Watch the Fed’s rate path (hikes vs cuts, forward guidance) to get the baseline directional bias for both DXY and US10Y. If both DXY and US10Y rise together, it usually reflects a “higher‑for‑longer” rates, growth‑plus‑inflation mix. If US10Y falls while DXY rises, it often signals safe‑haven demand (flight to USD) or recession pricing. this is just for educational purpose only #dxy #dollar index