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Trade Weighted U.S. Dollar Index: Advanced Foreign Economies, Goods and ServicesTrade Weighted U.S. Dollar Index: Advanced Foreign Economies, Goods and ServicesTrade Weighted U.S. Dollar Index: Advanced Foreign Economies, Goods and Services

Trade Weighted U.S. Dollar Index: Advanced Foreign Economies, Goods and Services

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DTWEXAFEGS trade ideas

Relationship between US dollar index and Inflation (CPI)?Hi, I am a complete newbie, but I am trying to study and learn more about economics and investing. I was wondering what the relationship was between the strength of the US dollar and the Consumer Price Index. I have plotted them together and I don't see anything off the bat. Shouldn't the strength of the dollar go down if people are paying more for the same good? Or is it just because all the other currencies are also going through inflation too so it all cancels out? Any thoughts? Thanks,
FRED:DTWEXAFEGS
by zeromodz
1
Dollar ReboundI believe we are headed toward a stronger dollar. In the chart is the trade weighted dollar index, which is a larger basket of foreign currencies than $DXY... $DXY is mostly pegged to the EUR/USD with around 65% of its currencies reflecting the Euro or currencies that are heavily reliant on the Euro. The trade weighted index is therefore a better representation of the dollar as it factors in more currencies. Bullish divergence has formed in the chart above on the RSI as well as the MACD. Previous bullish divergence (shown) lead to a trend change and ~9% gain in the dollar. Looking for a consolidation 89-90 level then a breakout higher. One catalyst for this move would be President Trump's repatriation of overseas dollars. I am already under the assumption that that world is short dollar supply, thus this repatriation would further choke the supply. I believe that this will cause a correction in the stock market. Subsequent plays: short commodities, short emerging markets, long precious metals, long dollars, and long yields. *not a pro trader & this is not advice
FRED:DTWEXAFEGSLong
by GregOh
1
Trade-weighted dollar indexThe trade-weighted dollar index was introduced in 1998 for two primary reasons. The first was the introduction of the euro, which eliminated several of the currencies in the standard dollar index; the second was to keep pace with new developments in US trade. In the standard US dollar index, a significant weight is given to the euro. To more accurately reflect the strength of the dollar relative to other world currencies, the Federal Reserve created the trade-weighted US dollar index, which includes a bigger collection of currencies than the US dollar index. The regions included are: Europe (euro countries) Canada Japan Mexico China United Kingdom Taiwan Korea Singapore Hong Kong Malaysia Brazil Switzerland Thailand Philippines Australia Indonesia India Israel Saudi Arabia Russia Sweden Argentina Venezuela Chile Colombia fred.stlouisfed.org en.wikipedia.org
FRED:DTWEXAFEGS
by Gorbie
Trade weighted dollar index: Strong fundamentals and technicalsThe trade weighted dollar index shows a very healthy quarterly rally here. We've now retested the yearly resistance from the previous downtrend, after breaking above it, and it acted as support so it's clear to me bulls are in control. Once we break the previous quarter high, odds of the uptrend resuming will increase, and will be fully confirmed after a 3.70% move up from the previous close during Q3, or if Q4 opens and closes above Q2's high without retesting it. Check out my updated track record here: pastebin.com If interested in my real time whatsapp alerts and swing trading newsletter, or in personal tuition, contact me privately. I'm offering a considerable discount on a packaged course which includes access to my private trading signals list for a year. Cheers! Ivan Labrie Link to Tim West's chatroom: www.tradingview.com We discuss setups like this often there. Feel free to stop by and subscribe to his indicator pack. If you have any questions ask. Risk disclaimer: My analysis is provided as general market commentary and does not constitute investment advice. I will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
FRED:DTWEXAFEGSLong
by IvanLabrie
Trade weighted Dollar Index: At yearly supportThe dollar has found support at a long term level in the yearly chart. It's clear we'll see a dollar rally, specially against EM currencies for an extended period of time. We can expect a move to 91.22, but if we manage to move above it, we could see uptrend continuation into the highs, and potentially new highs in the long term. My reccomendation: Found viable long entries in USD against EM currencies, like the ones I've posted. Focusing on continuation will be an extremely profitable exercise. See related ideas. If interested in my trading signals, or in personal tuition, contact me privately. I'm offering a considerable discount on a packaged course which includes access to my private trading signals list for a year. Cheers, Ivan Labrie. Link to Tim West's chatroom: www.tradingview.com We discuss setups like this often there. Feel free to stop by and subscribe to his indicator pack. If you have any questions ask.
FRED:DTWEXAFEGSLong
by IvanLabrie
Trade weighted dollar: Deflationary crisis?In this chart I'd like to point out the current trend in the Dollar index the Fed uses, which is the trade weighted dollar index. The DXY or USDOLLAR tickers everyone's using don't reflect the situation of emerging markets, since they have heavy Euro and Yen weights in their calculation. The setup is a monthly uptrend lasting at least until June, and with potential for at the very least 19.85% upside. It's possible that the Euro is topping and will become an ideal short, to rejoin this general trend, and I don't expect to see broad dollar bears for the time being. Now, how will this sway the Fed's intentions, since they consider that a stronger dollar is hurting their inflation targets, and thus their plan of action? This might be a catalyst for a stocks rally this year, but for now things remain volatile, so I'd advise caution. Check my gold, eurusd and SPY charts for more information on my perspective on said instruments. Feel free to stop by the Key Hidden Levels chatroom as well, there my mentor and others trained in this methodology share setups on a daily basis. If interested in coaching or trade signals contact me privately please. I run a trading chatroom where I share trading setups on a frequent basis, focusing on EURUSD, USDJPY, USDCAD, Gold, Silver, Oil, Stocks and Bitcoin. Cheers, Ivan Labrie.
FRED:DTWEXAFEGSLong
by IvanLabrie
14