8 replies to this topic

[jawndissedi]

Here's the chart that gets most of the attention and makes the goldbugs get excited:



But guess what? That's not the chart Prof. Bernanke & Co. cares most about. The index that has the greatest influence on the Fed is most likely the Broad Dollar index:



The Broad Dollar Index utilizes currencies from many more trading partners/countries, weights them according to actual trade flows and updates the weightings every year. China and Mexico currently comprise almost 25% of the index while neither shows up in either the U.S. Dollar Index or the Major Currencies Dollar Index.

Does that look like a currency on the brink collapse to you?

Data and charts courtesy of Ron Griess, thechartstore.com., reproduced here with permission.

[TradeMark]

Very Interesting. Thanks for posting. Do you know what the symbols are of these various indexes so one could look at them on a daily basis? I can't find them, or maybe I don't have the names right. thanks TM

[fauxpas13]

Do you know what the symbols are of these various indexes so one could look at them on a daily basis?

$USD is symbol for dollar (DX) at stockcharts.com

link to the dx futures (delayed) futuresource.com dollar index chart

[TradeMark]

Thanks, faux TM

[jawndissedi]

Very Interesting. Thanks for posting.



Do you know what the symbols are of these various indexes so one could look at them on a daily basis?

I can't find them, or maybe I don't have the names right.



thanks

TM

The data for the Broad Dollar Index comes directly from the Fed's website. I'm not sure how frequently it's updated.

[TradeMark]

Thanks jaw, needed symbol for that one even more I'll check out Fed TM

[beta]

That broad dollar index looks cooked, too. Target 60.

[pdx5]

Dollar index based on ACTUAL TRADING VOLUMES... Now that makes very good sense! Thanks for posting. I learned something new today... which is unusual because I know so darn much already

[Russ]

Broad dollar index looks to be headed for 60 in the long run.

Here's the chart that gets most of the attention and makes the goldbugs get excited:



But guess what? That's not the chart Prof. Bernanke & Co. cares most about. The index that has the greatest influence on the Fed is most likely the Broad Dollar index:



The Broad Dollar Index utilizes currencies from many more trading partners/countries, weights them according to actual trade flows and updates the weightings every year. China and Mexico currently comprise almost 25% of the index while neither shows up in either the U.S. Dollar Index or the Major Currencies Dollar Index.

Does that look like a currency on the brink collapse to you?

Data and charts courtesy of Ron Griess, thechartstore.com., reproduced here with permission.