The DXY (US Dollar Index) measures the dollar against a basket of six major currencies — the euro alone is about 57.6% of it. Traders use it as a one-glance read on dollar strength, and as context for gold and EUR/USD.
The dollar sits on one side of roughly 88% of all foreign-exchange trades, so when it moves, almost everything you trade feels it — gold, oil, the euro, emerging‑market currencies, even stock indices. The catch is that the dollar doesn't have a single price; it has a different exchange rate against every currency on earth. The DXY exists to answer one question at a glance: is "the dollar" strong or weak today? This guide covers what it is, how it's built, why it moves gold and EUR/USD, and how to use it as context — even though most retail traders can't buy it directly.
What is the DXY, exactly?
The US Dollar Index — ticker DXY, sometimes written USDX — tracks the value of the US dollar against a fixed basket of six foreign currencies. It's designed, maintained and published by ICE (Intercontinental Exchange).
The index launched in March 1973 at exactly 100.000, just after the world came off the Bretton Woods system of fixed exchange rates. That 100 is the baseline: above it, the dollar is broadly stronger than it was in 1973; below it, broadly weaker. For scale, the DXY has traded around the 100 mark through 2026 — it's spent most of the modern era roughly between the high‑90s and the low‑100s, with a record high of 164.72 in February 1985 and a low near 70.70. For the live figure, glance at any dollar‑index chart; the trend matters far more than any single reading.
The basket itself has been changed only once — when several European currencies were folded into the euro at the start of 1999. It has stayed the same ever since.
Which currencies are in the DXY basket?
Here's what surprises most people: the "US Dollar Index" is dominated by a currency that isn't the dollar. The euro makes up well over half of the basket.
Currency | Symbol | Approx. weight |
|---|---|---|
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% |
Those weights come from the ICE US Dollar Index methodology, and they reflect trade patterns from the early 1970s — which is why the euro (via the currencies it replaced) is so heavily represented, and why fast‑growing trade partners like China and Mexico aren't in it at all. (ICE)
The one thing to remember: because the euro is roughly 57.6% of the index, the DXY behaves almost like an upside‑down EUR/USD chart. Understand what moves the euro against the dollar and you already understand most of what moves the DXY.
How is the DXY calculated?
It isn't a simple average — it's a weighted geometric mean, a formula that multiplies each exchange rate raised to the power of its weight:
USDX = 50.14348112 × EUR/USD⁻⁰·⁵⁷⁶ × USD/JPY⁰·¹³⁶ × GBP/USD⁻⁰·¹¹⁹ × USD/CAD⁰·⁰⁹¹ × USD/SEK⁰·⁰⁴² × USD/CHF⁰·⁰³⁶
You never compute this by hand — every charting platform does it live — but two details are worth knowing:
- The signs of the exponents encode direction. EUR/USD and GBP/USD carry negative exponents because they're quoted as dollars per unit; when the euro or pound rises, the dollar is falling, so those pairs pull the index down. The pairs quoted as units per dollar (USD/JPY, USD/CAD, USD/SEK, USD/CHF) carry positive exponents.
- The weights are fixed. Unlike a stock index that rebalances regularly, the DXY's weights haven't changed since 1999. That stability is part of why traders trust it as a clean benchmark.
The result is one figure that summarises six exchange rates at once, updated tick by tick.
Why do traders watch the DXY?
A real‑time read on dollar strength
Instead of checking ten different dollar pairs, you can glance at the DXY and gauge broad dollar direction: rising means dollar strength across the board, falling means weakness. It's a fast filter for whether the wind is at your back or in your face on any dollar‑linked trade.
Its inverse relationship with gold
Gold is priced globally in US dollars, which creates a mechanical link. When the dollar strengthens, it takes fewer dollars to buy the same ounce, so the dollar price of gold tends to fall; when the dollar weakens, gold usually rises (and a cheaper dollar also makes gold cheaper for buyers holding other currencies). It's why many gold traders keep the DXY open in a corner of the screen alongside gold and other commodities.
Treat it as a tendency, not a law. The link can break: during bouts of serious geopolitical stress in 2026, the dollar and gold rose together, as investors bought both as safe havens. Central‑bank gold buying and shifting real yields can loosen the relationship too. Correlation is context, never a guarantee.
A shortcut for reading EUR/USD
Because the euro is about 57.6% of the basket, the DXY and EUR/USD are near‑mirror images. A rising DXY almost always means the dollar is gaining on the euro, so EUR/USD tends to fall — and vice versa. If EUR/USD is trying to break higher but the dollar index refuses to break lower, that's a divergence worth respecting.
A risk‑on / risk‑off gauge
The dollar is the world's primary safe‑haven currency. In risk‑off moments — market panic, recession fears, geopolitical shocks — money floods into dollars and the DXY firms. In calmer risk‑on phases, capital rotates toward higher‑yielding, riskier assets and the dollar index softens. So the DXY doubles as a rough read on the market's overall appetite for risk.
Can you actually trade the DXY?
Here's a practical point that trips up a lot of beginners: on most retail MetaTrader 5 accounts, the DXY itself isn't a tradable symbol. It's a proprietary ICE product, traded professionally through ICE futures (ticker DX) and options, and a handful of specialist brokers offer a CFD tied to it — but many retail platforms, MT5 included, don't list it by default. Check your broker's instrument list rather than assuming.
So how do traders act on a dollar view? Through the individual pairs that make up the story:
- Bullish the dollar? That might mean short EUR/USD, or long USD/JPY.
- Bearish the dollar? Long EUR/USD, or short USD/CAD.
- Have a gold thesis driven by the dollar? Position in gold, and use the DXY as confirmation.
In other words, the DXY is a compass, not a vehicle. It tells you which way the dollar is pointing; you then pick a tradable instrument that fits that view. That's exactly why it's best understood as context — it sharpens your decisions on the pairs you can actually trade.
Trading the dollar at NAMH Global
You can't trade the DXY directly on MT5, but you can trade almost everything it's a read on. NAMH Global lists major and minor forex pairs — EUR/USD, USD/JPY, GBP/USD and more — plus gold and other commodities, indices, crypto and equities, on MetaTrader 5 (web and mobile), within a range of 2,100+ instruments from a single account. That breadth is the point here: reading the dollar index only helps if you can express the view on the instruments it moves.
MT5's real‑time charting lets you keep dollar‑linked markets side by side, apply your own analysis, and manage positions with fast execution. Client funds are held in segregated accounts, and NAMH provides negative balance protection — so your losses on an account are capped at your balance and can't run past it. Support is available 24/7, and you can build the groundwork in the education hub before you place a trade.
FAQ — Frequently Asked Questions
What currencies are in the US Dollar Index?
The DXY measures the dollar against six currencies — the euro (57.6%), Japanese yen (13.6%), British pound (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%) and Swiss franc (3.6%). Because the euro dominates the basket, the index behaves largely like an inverse EUR/USD chart.
Why does the DXY move opposite to gold?
Gold is priced globally in US dollars, so a stronger dollar makes the same ounce cost fewer dollars, which tends to pressure the price — and the reverse when the dollar weakens. It's a tendency, not a rule; in times of stress the dollar and gold can rise together as investors buy both as safe havens.
Is a rising DXY good or bad for EUR/USD?
Because the euro is about 57.6% of the basket, a rising DXY usually means the dollar is gaining on the euro, so EUR/USD tends to fall. A falling DXY usually lines up with a rising EUR/USD. The two trade as near-mirror images, though not perfectly.
Can I trade the DXY on MT5?
Usually not directly. The DXY is a proprietary ICE index, and most retail MetaTrader 5 accounts don't list it as a tradable symbol. Traders use it as context and express a dollar view through individual pairs like EUR/USD, USD/JPY or GBP/USD instead. Always check your broker's instrument list.
What is a "high" or "low" DXY level?
There's no fixed threshold. The index launched at 100.000 in March 1973, so a reading above 100 means the dollar is broadly stronger than that 1973 baseline. Its record high was 164.72 in 1985 and its low around 70.70 — but trend matters far more than any single number.
Where does the DXY data come from?
The US Dollar Index is designed, maintained and published by ICE (Intercontinental Exchange). The underlying exchange rates are widely reported, and official US dollar reference data comes from sources such as the Federal Reserve's H.10 release. Rely on primary or recognised data providers.
Ready to trade the dollar?
The DXY is one of the clearest lenses in macro trading — a single number that helps you read the dollar, anticipate moves in gold and EUR/USD, and gauge the market's mood. The next step is applying that context to the instruments you actually trade. You can trade 2,100+ markets on MetaTrader 5 with NAMH Global — start on the forex page and build the groundwork in the education hub.
Open an account with NAMH Global
Risk warning: CFDs are complex, leveraged instruments and carry a high risk of losing money rapidly. You can lose your entire deposit; NAMH Global provides negative balance protection, so your losses on an account won't exceed your balance. This is educational content, not investment advice, a recommendation, or an offer to trade. Only trade with money you can afford to lose.
NAMH Global Ltd is a company registered in Saint Lucia (Registration No. 2024-00372).
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