US Dollar Index Research

You can find up-to-the-minute US dollar news, research, forecasts, and trade ideas at DailyFX's US Dollar Index research page.

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Latest Research

Reversal in Sentiment Accelerate Dollar Gains

The greenback continued to advance for a second day after breaching the upper bound trendline of a descending channel dating back to late May. Today's gains come on the back of a strong performance in equities which snapped six days of consecutive losses.

WHY TRADE USDOLLAR?

The Dow Jones FXCM Dollar Index Basket (USDOLLAR) is a tradable instrument offered by FXCM.
It has several advantages for traders:

Simplicity: Do you think the US dollar will rise? It is easy to put that opinion into action. Buy USDOLLAR. Do you think the dollar will fall? Sell USDOLLAR. Simply click Buy or Sell in your FXCM account.

Low Spreads: USDOLLAR combines four of the lowest-spread currency pairs in forex to make a low-spread, inexpensive, and very liquid trading instrument with no commissions* or expense ratio.

Earn Rollover: Take advantage of higher interest rates outside the USA when selling USDOLLAR. Interest is paid daily.

Geographic Diversification: USDOLLAR was equally weighed at its inception against the Euro, the British Pound, the Japanese Yen, and the Australian Dollar, giving traders exposure to markets in Europe, Asia, and Australia.

Available 24 Hours: Like most currency pairs at FXCM, USDOLLAR is available 24 hours a day, five days a week.

Vital Statistics US Dollars
Target Spread 2 to 3 pips
Margin Requirement** 58 USD per lot
Minimum Trade Size 1 lot
Pip cost 1 USD per lot traded
Index Average Daily Range 38 pips in 2010

1 lot is equivalent to 10,000 USD on January 1, 2011. The value of the lot changes as the price of USDOLLAR changes.

NOTE: FXCM strives to provide traders with tight, competitive spreads; however, there may be instances when market conditions cause spreads to widen beyond the typical spreads displayed.

**Trading on margin can both positively and negatively affect your trading experience as both profits and losses can be dramatically amplified.

HOW CAN I TRADE USDOLLAR?

The Dow Jones FXCM Dollar Index Basket (USDOLLAR) is exclusive to FXCM. Here's how you get started.

Free Demo Account Step 1:Sign up for a Demo Account
Download Platform Step 2:Download the FXCM Trading Station II Platform
Step 3:Log in and start trading. Simply buy or sell USDOLLAR

The USDOLLAR is only available for live trading through Forex Capital Markets, Limited. The USDOLLAR may only be traded on a Demo Account through Forex Capital Markets, Ltd.

The USDOLLAR is executed using a dealing desk execution model. In a dealing desk model, the broker assumes market risk for client positions and does not use straight through order processing (i.e. No Dealing Desk execution).

HOW IT WORKS

As of Inception Date 1/1/2011

PDFDOWNLOAD THE BROCHURE

The Dow Jones FXCM Dollar Index Basket is designed to correspond to the price performance of the US dollar, as represented by the Dow Jones FXCM Dollar Index. It reflects the change in value of the US dollar measured against a basket of the most liquid currencies in the world: the Euro, British pound, the Japanese yen, and the Australian dollar.

The Dow Jones FXCM Dollar Index began on January 1, 2011, at a value of 10,000.00. It represents an equivalent $10,000 position in each of the four currencies that make it up.

The value of the index is the value of the equivalent US Dollar position against these currencies. It rises when the Dollar rises against the Euro, the British Pound, and the Australian Dollar and falls as the Dollar depreciates compared to these currencies. For example, if the US dollar rallies 100 pips against each the EUR, GBP, JPY, and AUD, the index will appreciate by approximately 100 points. It's that simple.

The Dow Jones FXCM Dollar Index Basket, which is shown on FXCM's trading platforms as USDOLLAR, is composed in the same way. Its tradable quotes are based on the current EUR/USD, USD/JPY, GBP/USD, and AUD/USD rates quoted by FXCM.

* In our No Dealing Desk forex execution model, FXCM is compensated by a fixed mark-up on the spreads it receives from liquidity providers, who may also compensate FXCM for order flow. Under the dealing desk execution model, FXCM acts as a market marker and is compensated through the spread. Please note FXCM does not charge commissions on standard accounts, however, commission charges may apply for certain classes of non-standard accounts such as Active Trader.