Description
This week we will discuss the (DXY) a.k.a the US Dollar Index. DXY — U.S. Dollar Index Chart — TradingViewLinks to an external site.Part One – Please research and familiarize yourself with the US Dollar Index.Explain:a) What is the US Dollar Index is,b) What is it weighted against,c) Why do we have it and why is it important,Part Two – 1. What conditions usually lead to a strong Dollar Index, and why is this beneficial to the US but not beneficial the rest of the world. 2. What conditions usually lead to a weak Dollar Index, and why is this not beneficial to the US but is beneficial to the rest of the world. Part Three – “Excluding a major economic crisis”, why would it be important for the United States to prioritize a weak Dollar Index, even if it often leads to yearly trade deficits?