[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-564693-105":53,"doc-detail-564693-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","us-dollar-index-brochure","U.S. Dollar Index - Brochure","","ICE USDX is a currency index with fixed composition that has changed only once since its 1973 introduction, when the euro replaced several European currencies. The brochure compares it with the Federal Reserve’s annual trade-weighted dollar index and notes a close match for major currencies. It details how divergences align with periods of dollar weakness/strength, and discusses trade partner shifts toward Mexico and China. It also explores linkages with U.S. current account and federal deficits, and explains the role of interest-rate expectations.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":11,"@type":70,"position":76},"https://docshare.wps.com/template/presentations/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/us-dollar-index-brochure/564693/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/us-dollar-index-brochure/564693.png","ImageObject",442,249,{"name":88,"@type":89},"SANS","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-22","2026-10-12",true,{"@type":98,"interactionType":99,"userInteractionCount":47},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"How does the ICE USDX differ from the Federal Reserve’s trade-weighted dollar index?","Question",{"text":108,"@type":109},"The ICE USDX has a fixed composition, changing only once since 1973, while the Federal Reserve’s trade-weighted index is updated annually to reflect prior-year developments.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"What is the brochure’s main finding about the relationship between ICE USDX futures and the Federal Reserve’s major currency index?",{"text":113,"@type":109},"Despite differences in weighting and composition, the ICE USDX futures contract and cash index track the Federal Reserve’s major-currency trade-weighted index closely, with a high variance explained measure.",{"name":115,"@type":106,"acceptedAnswer":116},"What does the brochure identify as key drivers of currency movements?",{"text":117,"@type":109},"It states that differential interest rate expectations drive currency movements and outlines covered interest arbitrage steps, emphasizing forward-looking interest rate differentials around the forward unwind.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},564693,1792294813,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":8,"category_name":11,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":47,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":135,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":140,"read_time":76},962090760505,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","U.S. Dollar Index  \nThe USDX is quite unique among currency indices in its fixed composition. It has changed once since its 1973 introduction, and that was when the euro was launched in January 1999, replacing a number of European currencies. The net representation of the European legacy currencies in the USDX remained fixed at 57.6%.  \nBy contrast, the Federal Reserve’s trade-weighted dollar index changes annually to reflect prior-year developments. Because the Federal Reserve is not in the business of licensing economic indicators for commercial purposes, this after-the-fact index is unsuitable for trading purposes. The relative weights of the two indices are shown on the next page.  \nYet for al l of the differences in weighting and composition, the ICE USDX futures contract and cash index matches the Federal Reserve’s trade-weighted index of major currencies very closely. Its r2, or percentage of variance explained, is .933 with the deviations occurring in four distinct periods. The first, 1978-1981, was a period when the dollar was especially weak against the major currencies. The next two, 1984-1985 and 2000-2002, occurred when the dollar was especially strong against the major currencies. The fourth divergence began as Europe’s sovereign credit problems moved to the fore in 2009 and continued throughout calendar 2011. The Federal Reserve’s broad trade-weighted index, which includes minor currencies, is displayed for reference purposes.  \nWEIGHTS OF ICE FUTURES U.S. DOLLAR INDEX (USDX)  \nEURO 57.6%  \n JAPANESE YEN 13.6%  \n BRITISH POUND 11.9%  \n CANADIAN DOLLAR 9.1%  \n SWEDISH KRONA 4.2%  \n SWISS FRANC 3.6%  \nSource: ICE Futures U.S.  \nU.S. Dollar Index 2  \nFEDERAL RESERVE 2011 TRADE WEIGHTS (ONE PERCENT MINIMUM)  \nSource: Federal Reserve  \n CHINA  \n EUROZONE  \n CANADA  \n MEXICO  \n JAPAN  \n KOREA  \n U. K.  \n TAIWAN  \n BRAZIL  \n SINGAPORE  \n MALAYSIA  \n INDIA  \n SWITZERLAND  \n THAILAND  \n AUSTRALIA  \n HONG KONG  \n RUSSIA  \n INDONESIA  \n ISRAEL  \nTHE USDX MATCHES THE FEDERAL RESERVE’S MAJOR CURRENCY INDEX CLOSELY  \nSource: Bloomberg  \nThe value of the ICE USDX is underscored by its stability in the face of changing trade weights over time. The Federal Reserve has indices for total trade weights and for import and export weights. The post-1973 history of the total trade weight series is dominated by the rise of Mexico and especially China as trading partners of the U. S., at the expense of Japan and Canada.  \nTOTAL TRADE WEIGHTS FOR U.S. DOLLAR (2011 WEIGHT GREATER THAN 1.5%)  \nSource: Federal Reserve  \nIf we divide total weights into import and export weights, the increasing role of China and Mexico become even more apparent on the import side, as has the role of Mexico vis-à-vis Japan on the export side. China is becoming increasingly important as a customer for U. S. exports as well. Currencies are only a partial explanation for changes in trade weights. Other factors such as labor costs, resource endowments and changes in national economic growth rates following changes in internal political systems can be far more important than currencies in determining a nation’s trade patterns.  \nTOTAL IMPORT WEIGHTS FOR U.S. DOLLAR (2011 WEIGHT GREATER THAN 1.5%)  \nSource: Federal Reserve  \nTOTAL EXPORT WEIGHTS FOR U.S. DOLLAR (2011 WEIGHT GREATER THAN 1.5%)  \nSource: Federal Reserve  \nTHE TWIN DEFICITS  \nIf trade flows do not drive the ICE USDX or vice-versa, do the U.S. federal and current account deficits, the so-called twin deficits? Not as much as the dollar’s many detractors would like to believe. The current account deficit as a percentage of GDP expanded in two great episodes, the first half of the 1980s and 1998-2006. Both expansionsled the decline of the ICE USDX by 24 months. However, the narrowing of the current account deficit between 1988 and 1991 produced no  \nU.S. Dollar Index 3  \nrally in the ICE USDX, and the huge rally in the ICE USDX between 1980 and 1985 occurred independently of the current account deficit. A r","cbCaibJOvi8cT4RY","https://ap.wps.com/l/cbCaibJOvi8cT4RY","pdf",1305858,8,"English","# U.S. Dollar Index\n## Index composition and comparison with the Federal Reserve\n## Weights of ICE futures U.S. dollar index (USDX)\n## Trade weights and partner shifts\n## The twin deficits\n## The USDX and deficit relationships\n## Interest rate expectations","[{\"question\":\"How does the ICE USDX differ from the Federal Reserve’s trade-weighted dollar index?\",\"answer\":\"The ICE USDX has a fixed composition, changing only once since 1973, while the Federal Reserve’s trade-weighted index is updated annually to reflect prior-year developments.\"},{\"question\":\"What is the brochure’s main finding about the relationship between ICE USDX futures and the Federal Reserve’s major currency index?\",\"answer\":\"Despite differences in weighting and composition, the ICE USDX futures contract and cash index track the Federal Reserve’s major-currency trade-weighted index closely, with a high variance explained measure.\"},{\"question\":\"What does the brochure identify as key drivers of currency movements?\",\"answer\":\"It states that differential interest rate expectations drive currency movements and outlines covered interest arbitrage steps, emphasizing forward-looking interest rate differentials around the forward unwind.\"}]","U.S. Dollar Index - Brochure | PDF",1791843715]