Understanding the United States Dollar

Posted in Forex CFDs
5 minute read
UnderstandingFed-Hero-1

An introduction to the US Dollar: what you should know about the USD before trading it. What drives its value, key indicators, and its relationship to US bonds and gold.

Introduction to USD (the US Dollar)

The biggest currency by trading volume

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Different currency ratios in 2022 Source: BIS

What factors can affect the US Dollar?

FOMC
Economic Indicators in the United States

What is the relationship between the US Dollar and Bond Yields?

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Chart comparing the USD index with US 10-year and 2-year bond yields Source: TradingView
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USDEUR(1/EURUSD) as compared with the US 10-year bond yield vs. the German 10-year bond yield Source: TradingView
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Source: TradingView

How does the price of gold correlate with the United States dollar?

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Comparison of the correlation between fluctuation in gold and the USD Source: TradingView

What are the US Dollar (USD) features in FX trading?