DXY (Dollar Index)

Updated 2026-09-20

Definition

An index that measures the US dollar against a basket of currencies (mainly the euro, yen and pound).

Why it matters

It gives the dollar's temperature: if it rises strongly, EUR/USD, GBP/USD and AUD/USD tend to fall. Useful to avoid duplicating dollar exposure.

Practical example

DXY up 0.5% in a day: EUR/USD is probably down.

Learn more

Course lesson: Sessions and correlations: when to trade and what not to duplicate

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Full glossary

Educational content, not financial advice. Trading involves risk.