DOLLAR INDEXU.S. Dollar Currency IndexTVC:DXYShavyfxhubDollar What is DXY? The DXY (or USDX) measures the value of the US Dollar (USD) against a weighted basket of six major currencies: • Euro (EUR) ~57.6% • Japanese Yen (JPY) ~13.6% • British Pound (GBP) ~11.9% • Canadian Dollar (CAD) ~9.1% • Swedish Krona (SEK) ~4.2% • Swiss Franc (CHF) ~3.6% A rising DXY = stronger USD. A falling DXY = weaker USD. Current levels are around 100.8–101 (as of early July 2026).  How DXY Affects Gold (XAU/USD) Gold and DXY have a strong negative (inverse) correlation — typically between -0.5 and -0.8 historically.  • Stronger USD (↑ DXY) → Lower gold prices: Gold is priced in USD. A stronger dollar makes gold more expensive for buyers using other currencies, reducing demand and pressuring prices down. • Weaker USD (↓ DXY) → Higher gold prices: Gold becomes cheaper for international buyers, boosting demand. Gold also acts as a hedge against dollar weakness. Exceptions: During extreme crises (e.g., major geopolitical events or simultaneous safe-haven flows), both can sometimes rise together temporarily.  How DXY Affects Other Currency Pairs (“Other Pairs”) Since DXY tracks the USD’s strength, it has a direct impact on most USD-based forex pairs: • Negative correlation pairs (DXY up → pair down): • EUR/USD: Heavily weighted in DXY — strong inverse link. • GBP/USD, AUD/USD, NZD/USD, etc. (commodity currencies often move with risk sentiment too). • Positive correlation pairs (DXY up → pair up): • USD/JPY, USD/CHF, USD/CAD (these strengthen when USD does). Practical trading tip: If DXY is breaking higher, expect downward pressure on EUR/USD, GBP/USD, and gold. #DXY