What is DXY?

By admin , 26 December 2025

The US Dollar Index (DXY) measures the strength of the US dollar against a basket of six major currencies:

  • EUR — Euro (largest weight)

  • JPY — Japanese Yen

  • GBP — British Pound

  • CAD — Canadian Dollar

  • SEK — Swedish Krona

  • CHF — Swiss Franc


📈 What does DXY at 98 mean?

A reading of 98 indicates that:

👉 The USD is relatively strong compared to its historical reference level.
👉 A +0.04% move is mild, signaling stability rather than a sharp shift.


🌍 Market impact

🔻 1. Risk assets (stocks & crypto)

Typically:

  • Stronger USD → slight pressure on risk assets

  • Weaker USD → supportive for risk assets

Given the small move, the short-term impact is limited.


🪙 2. Crypto market

A firm USD can:

  • Reduce risk appetite

  • Lead to mild downward pressure on crypto

But again — 0.04% is minor, so effects are mostly psychological.


🛢 3. Commodities (gold, oil)

A stronger USD often:

  • Makes commodities more expensive for foreign buyers

  • Slightly weighs on gold and oil

But the impact here should be moderate.


📌 Quick takeaway

DXY at 98 + 0.04% daily rise = a modest strengthening of the USD
Risk assets may see mild pressure, but no major shock
Signal is neutral-to-slightly-bearish for crypto & commodities