US30The US30, also known as the Dow Jones Industrial Average (DJIA), is a stock market index that represents the performance of 30 large-cap companies listed on the New York Stock Exchange (NYSE) and the NASDAQ. These companies are leaders in their respective industries and are considered to be a representative sample of the US economy.
The US30 is a price-weighted index, meaning that the companies with higher stock prices have a greater influence on the index's value. The index is calculated and maintained by S&P Dow Jones Indices.
DX (US Dollar Index):
The US Dollar Index (DX or DXY) is a measure of the value of the United States dollar relative to a basket of six major currencies:
1. Euro (EUR)
2. Japanese Yen (JPY)
3. Pound Sterling (GBP)
4. Canadian Dollar (CAD)
5. Swedish Krona (SEK)
6. Swiss Franc (CHF)
The DXY is a weighted geometric mean of the dollar's value relative to these six currencies. The index is calculated and maintained by Intercontinental Exchange (ICE).
IMPORTANT INFORMATION FOR TRADERS;
Correlation between US30 and DXY:
The correlation between the US30 and DXY is generally negative, meaning that when the US dollar strengthens (DXY rises), the US30 tends to decline, and vice versa. This is because:
1. Export competitiveness: A stronger dollar makes US exports more expensive, which can negatively impact the earnings of US companies and, in turn, their stock prices.
2. Commodity prices: A stronger dollar can lead to lower commodity prices, which can negatively impact the earnings of companies in the commodity sector.
3. Interest rates: A stronger dollar can lead to higher interest rates, which can increase borrowing costs for companies and consumers, potentially negatively impacting economic growth and stock prices.
we need price to push into supply and we sell off us30
