USD Index
What is the USD Index (US Dollar Index)?
The USD Index (also called the US Dollar Index, or USDX) shows the overall strength of the US Dollar compared to a group of major currencies. These include the Euro, Yen, Pound, Canadian Dollar, Australian Dollar, Swedish Krona, and Swiss Franc. It gives one number that reflects whether the US Dollar is getting stronger or weaker in general.
Why It Matters for CFDs
The USD Index helps traders judge whether the US Dollar is generally strong or weak. A rising index usually means the US Dollar is gaining strength, while a falling index suggests the US Dollar is losing strength.
For example, if the USD Index goes up, EURUSD often moves down. EURUSD might drop from 1.10201 to 1.09750 as the US Dollar strengthens, since the Euro becomes weaker in comparison. Still, other factors such as economic data or central bank policy can also affect the market.
Where to Check It
Most CFD platforms or economic calendars show the USD index today (sometimes listed as Dollar index today or USDX). You can check the USD index current value and how much it has moved during the day.
Other Glossary Terms
U
- Unrealized P&L
Unrealized P&L (floating P&L) is the current profit or loss on open CFD positions that changes with price movements and becomes realized only when the trade is closed.
- Up trend
An uptrend is when a market’s price consistently moves higher over time, forming higher highs and higher lows, showing strong buyer control and overall upward momentum.
- Unemployment Rate
The unemployment rate measures the percentage of people in the labor force who are jobless but actively seeking work, indicating how strong or weak a country’s job market is.
- Unit
A unit in CFDs is the smallest tradable size that shows how much of an asset you control; more units increase exposure and risk, while fewer units offer safer control.
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