DOLLAR INDEX The dxy is the measure of the united state dollar relative to basket of six majors foreign currencies, it was originally developed by U.S Federal Reserve in 1973 to provide a trade -weighted average value of the dollar against global currencies.
the six currencies are EURO 57%,JPY 13.6%,GBP 11.9%,CAD 9.1% SEK 4.2% CHF 3.6%
The index rises when the dollar strengthens against these currencies and falls when it weakens ,its used to gauge the overall strength of the us dollar in the global market.
US10Y
THE US10Y ,the treasury note yield is the interest rate the U.S government pays to borrow money for 10 years ,it serves as a crucial benchmark for other interest rates and is a key indicator of the investor sentiment about the economy, in context it reflects the return an investor expect for lending money to the U.S. government for a decade .
the interest is paid semi annually at a fixed coupon rate and the yield moves inversely to bond price; when bond price fall the yield rises, and vice versa .
this have a direct effect on borrowing cost across the economy ,including mortgage rates and corporate loans .
when yield is rising investor optimism is high about the economic growth and inflation ,while failing yield indicates economic caution and recession fear and concern
technical interpretation of the monthly chart
the dxy is in buy back position on ascending trendline line ,but price remains below supply roof and if we get monthly retest of broken demand floor we could see price selling off.
trading is 100% probability.
