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Dollar Index - what's wrong?

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Mr. Trillioner
4808
Mr. Trillioner  
for the second day in a row at the opening of the American session without good reason, the dollar index starts to plummet. As a result, react, and other currency pairs.

What's happening? What and who is it lowers the rate of the US dollar?
Nurochman
958
Nurochman  
Daniil Stolnikov:
for the second day in a row at the opening of the American session without good reason, the dollar index starts to plummet. As a result, react, and other currency pairs.

What's happening? What and who is it lowers the rate of the US dollar?
The USD Index measures the performance of the US Dollar against a basket of currencies: EUR, JPY, GBP, CAD, CHF and SEK. It includes 9 chart types, 1 up to 1,000 periods and a vast range of customizable technical indicators.
Mr. Trillioner
4808
Mr. Trillioner  
Nurochman:
The USD Index measures the performance of the US Dollar against a basket of currencies: EUR, JPY, GBP, CAD, CHF and SEK. It includes 9 chart types, 1 up to 1,000 periods and a vast range of customizable technical indicators.
yes I know. In other words, if the dollar index falls and its member currencies are rising, then falling dollar itself !!! That's why I ask - what's wrong with him?
Witold Zakrzewski
42
Witold Zakrzewski  
Daniil Stolnikov:
yes I know. In other words, if the dollar index falls and its member currencies are rising, then falling dollar itself !!! That's why I ask - what's wrong with him?

The Euro is the most important currency in the basket. Three possible reasons for weaker USD:

1. Everyone is sure that there will be no rate hike in US until September or even until next year.  

2. Someone is expecting deal between Greece and its creditors.  

3. Sharp sell-off of German treasury bonds causes unwinding of the related short euro hedge positions.  

Mr. Trillioner
4808
Mr. Trillioner  
Witold Zakrzewski:

The Euro is the most important currency in the basket. Three possible reasons for weaker USD:

1. Everyone is sure that there will be no rate hike in US until September or even until next year.  

2. Someone is expecting deal between Greece and its creditors.  

3. Sharp sell-off of German treasury bonds causes unwinding of the related short euro hedge positions.  

Thanks for the answer, but why euro? )) As I wrote above - is the dollar falls. Accordingly, it is inversely proportional to grow other currencies. Including the euro. The reason in something else!
Witold Zakrzewski
42
Witold Zakrzewski  
Daniil Stolnikov:
Thanks for the answer, but why euro? )) As I wrote above - is the dollar falls. Accordingly, it is inversely proportional to grow other currencies. Including the euro. The reason in something else!

Euro is the most important because of the weight. DXY is a weighted geometric mean of the dollar's value relative to other select currencies:

 

http://en.wikipedia.org/wiki/U.S._Dollar_Index 

Mr. Trillioner
4808
Mr. Trillioner  
Witold Zakrzewski:

Euro is the most important because of the weight. DXY is a weighted geometric mean of the dollar's value relative to other select currencies:

 

http://en.wikipedia.org/wiki/U.S._Dollar_Index 

Well, I'll try for another. Assume that the dollar index fell due to growth in the euro. Then answer the question - why are rising at the same time remaining pairs that make up the index?

And the second question - once the cause of the growth of the euro - what is the root cause of its growth? This happened at certain times, but on the economic calendar in these moments there was absolutely no important news on any of the currencies included in the index !!!
Witold Zakrzewski
42
Witold Zakrzewski  
Daniil Stolnikov:
Well, I'll try for another. Assume that the dollar index fell due to growth in the euro. Then answer the question - why are rising at the same time remaining pairs that make up the index?

And the second question - once the cause of the growth of the euro - what is the root cause of its growth? This happened at certain times, but on the economic calendar in these moments there was absolutely no important news on any of the currencies included in the index !!!

Look at the daily charts. Second most important currency in the index is JPY. And JPY is flat against the USD last 5 sessions. GBP and CAD are up against USD but not so strong like EUR.

But why to bother about other currencies when EUR has 57.6% weight in the index :)

 

About cause of the growth of EUR check out this article:

http://www.marctomarket.com/2015/06/us-is-not-driving-dollar.html 

Mr. Trillioner
4808
Mr. Trillioner  
Witold Zakrzewski:

Look at the daily charts. Second most important currency in the index is JPY. And JPY is flat against the USD last 5 sessions. GBP and CAD is up against USD but not so strong like EUR.

But why to bother about other currencies when EUR has 57.6% weight in the index :)

 

About cause of the growth of EUR check out this article:

http://www.marctomarket.com/2015/06/us-is-not-driving-dollar.html 

Thank you for your opinion

Based on what you said dependence is as follows:

Euro Rises -> Dollar falling -> rising other currencies
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