Meet the U.S. Dollar Index (USDX) – The Dollar’s Scoreboard
If you’ve traded stocks, you’ve probably heard of indices like the S&P 500, Dow Jones, or NASDAQ. And no, the Nimbus 2001 isn’t one of them—that’s Harry Potter’s broomstick. 🧹
Well, just like stocks have indices, currencies do too! For the U.S. dollar, that’s the U.S. Dollar Index, also known as the USDX—technically the ICE U.S. Dollar Index.
What Is the U.S. Dollar Index?
In simple terms, the USDX measures the value of the U.S. dollar against a basket of major foreign currencies.
Think of it like a scoreboard showing how strong (or weak) the dollar is compared to other top currencies in the world.
What’s in the Basket?
The U.S. Dollar Index tracks six major currencies:
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Euro (EUR)
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Japanese Yen (JPY)
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British Pound (GBP)
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Canadian Dollar (CAD)
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Swedish Krona (SEK)
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Swiss Franc (CHF)
Here’s a fun twist: although there are only six currencies, they represent 24 countries! That’s because the euro is used by 19 European Union nations.
Why the USDX Matters
Even though it only covers a portion of the globe, the USDX is a widely used indicator of the dollar’s overall strength. That’s because many other currencies follow its moves closely.
You can trade the USDX too—it's available as:
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Futures contracts (DX) on the Intercontinental Exchange (ICE)
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ETFs
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CFDs
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Options
Who Owns the U.S. Dollar Index?
The USDX is owned and managed by ICE (Intercontinental Exchange)—a major global exchange group that also owns the New York Stock Exchange.
They’ve offered USDX futures since 1985 and control how the index is calculated, including its currency weights.
The futures contract for the USDX trades 21 hours a day and gets its liquidity from the massive forex spot market, which turns over $2 trillion daily!
What’s the Difference? USDX vs. DX vs. DXY
You may see different symbols for the U.S. Dollar Index:
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USDX – General term for the index.
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DX – ICE’s ticker for USDX futures contracts.
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DXY – Commonly used by Bloomberg and traders for the spot (cash) index. Sometimes called the “Dixie.”
All three refer to the same concept but are used in slightly different contexts.
How the USDX Is Weighted
Since all six currencies and economies are different in size, each one has a different weight in the index.
Current breakdown:
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Euro (EUR): ~58% – the biggest influence by far!
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Japanese Yen (JPY): ~14%
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The remaining four: less than 30% combined
So when the euro drops, the USDX usually goes up—making it feel more like an “Anti-Euro Index.”
Did You Know?
Before the euro, the index included 10 currencies like the Deutsche Mark, French Franc, and Italian Lira. When the euro came along, it replaced them in the index.
Because the USDX is so euro-heavy, some traders prefer more balanced alternatives like:
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The Trade Weighted Dollar Index
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The Bloomberg Dollar Spot Index
We’ll cover those later!
Is the USDX Ever Rebalanced?
Not regularly. The only big change came when the euro was introduced. ICE monitors the index and can make adjustments, but they rarely do.
How Is the Index Calculated?
The ICE USDX is updated every 15 seconds during trading hours. It’s based on exchange rates and reflects interest rate differences between the U.S. and the currencies in the basket.
Where to Find USDX Prices
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Real-time prices are available on ICE’s WebICE platform—but it’s a paid service.
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Free delayed prices can be found on sites like Bloomberg, Yahoo! Finance, MarketWatch, CNBC, and the ICE website.
In summary, the ICE U.S. Dollar Index (USDX) is a key benchmark that helps traders and analysts gauge how strong the dollar is globally. Whether you trade it directly or use it to spot trends, it’s a powerful tool in any currency trader’s toolbox.