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    The document discusses monitoring movements in the US Dollar Index (DXY) and its relationship to other currencies and US Treasury bond yields. It notes that when DXY rises, other currencies that trade against the US dollar will fall. It advises looking at the 10-Year US Treasury bond (US10Y) to predict DXY movements, saying that lower bond yields correspond to lower interest rates and a weaker dollar, while higher yields mean stronger interest rates and a stronger dollar. So tracking the direction of US10Y can indicate the direction of changes in the DXY and its effects on other currencies.

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    The document discusses monitoring movements in the US Dollar Index (DXY) and its relationship to other currencies and US Treasury bond yields. It notes that when DXY rises, other currencies that trade against the US dollar will fall. It advises looking at the 10-Year US Treasury bond (US10Y) to predict DXY movements, saying that lower bond yields correspond to lower interest rates and a weaker dollar, while higher yields mean stronger interest rates and a stronger dollar. So tracking the direction of US10Y can indicate the direction of changes in the DXY and its effects on other currencies.

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    15 views1 page

    Lesson 2

    Uploaded by

    cours skol
    The document discusses monitoring movements in the US Dollar Index (DXY) and its relationship to other currencies and US Treasury bond yields. It notes that when DXY rises, other currencies that trade against the US dollar will fall. It advises looking at the 10-Year US Treasury bond (US10Y) to predict DXY movements, saying that lower bond yields correspond to lower interest rates and a weaker dollar, while higher yields mean stronger interest rates and a stronger dollar. So tracking the direction of US10Y can indicate the direction of changes in the DXY and its effects on other currencies.

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    Lesson 2

    Keep an eye on DXY


    There is a correlation between DXY and other currencies
    If the DXY goes up, others that cross USD go down
    How to know where the DXY go ?
    There we to look at the US10Y
    (The greater the interest rate is increased the value of the dollar will increase )
    if price of the bonds goes up, the yield goes down ( inverse relationship
    between them)
    where interest rate deduct from?
    if bond yield goes down interest rate goes down,
    DXY goes down
    And if Bond Yield goes up, interest rate goes up, DXY goes up
    So we have to look at the direction of US10Y and we will know the doirection
    of DXY

    US10Y ------- DXY--------OTHERS CURRENCIES THAT CROSS US

    Higher time frame ??

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