DXYThe U.S. Dollar Index (USDX), also known as DXY, DX, or informally the "Dixie," measures the value of the U.S. dollar relative to a basket of six foreign currencies. It was created by the U.S. Federal Reserve in 1973 after the Bretton Woods system ended. The index rises when the U.S. dollar gains strength compared to other currencies and falls when it weakens.
The USDX is calculated as a geometrically weighted average of the following currencies.
Euro (EUR): 57.6%
Japanese Yen (JPY): 13.6%
British Pound Sterling (GBP): 11.9%
Canadian Dollar (CAD): 9.1%
Swedish Krona (SEK): 4.2%
Swiss Franc (CHF): 3.6%
The value of the U.S. Dollar Index is influenced by the demand and supply of the U.S. dollar and the component currencies. Currency demand is affected by several factors, including monetary and trade policy, economic growth, inflation, geopolitical events, and financial market sentiment.
As of February 5, 2025, the U.S. gross national debt is $36.22 trillion8. On January 2, 2025, the debt limit was reinstated at $36.104 trillion. The United States breached the debt ceiling on January 21, 2025.
Here's how the debt may affect the U.S. government in the future:
Growing interest payments The Congressional Budget Office (CBO) projects that interest payments will total $952 billion in fiscal year 2025. Interest payments are projected to rise rapidly throughout the next decade, climbing to $1.8 trillion in 2035.
Strain on essential programs Programs that millions of Americans depend on may be squeezed by interest costs on the national debt.
Slower economic growth Unsustainable debt levels may lead to slower economic growth and increase the chances of a fiscal crisis.
Limited resources Larger explicit debt means more future receipts devoted to debt service, reducing funds for public goods and services.
Fiscal policy challenges The U.S. faces several fiscal policy challenges in 2025.
Increased borrowing costs The government's annual spending on net interest has more than tripled .
Unsustainable path The federal government is on an unsustainable fiscal path that poses serious economic, security, and social challenges if not addressed.
Growing Deficits The U.S. is projected to run a federal budget deficit of $1.9 trillion in fiscal year (FY) 2025.
High percentage of GDP Publicly held debt is projected to grow more than twice as fast as the economy, reaching 200% of the size of the economy by 2047.
many Americans don't know and don't see what is coming, its bigger than them .
disclaimer; trade at your risk and manage your risk, if you find yourself in a bad trade try as much as possible to come out of it.
