USD Index : Weightings

The formula for the calculation of the US Dollar Index is =

USDX = 50.14348112 × EURUSD^−0.576 × USDJPY^0.136 × GBPUSD^−0.119 × USDCAD^0.091 × USDSEK^0.042 × USDCHF^0.036

Currency Weights

• Euro = 57.6%
• Japanese yen = 13.6%
• British pound = 11.9%
• Canadian dollar = 9.1%
• Sweden krona = 4.2%
• Swiss franc = 3.6%

USD index = Value of USD relative to Mar 1973 (100) = Date of agreement made in Smithsonian Institution in Washington by leading nations to let their currencies float against one another = End of Bretton Woods Fixed Exchange regime made 25 years prior.

Prefer to express USD view via USD index futures on ICE/IUS because less exposed to pair-specific volatility and more representative of true underlying USD trend. (Warning : Liquidity in this contract sucks and unpleasant fills can happen to stop orders. Not one for the large volume trader to dabble in).

[Got round the problem of not willing to pay for live feeds for USDX by computing my own from existing live feeds for the components]