What moves the dollar index in the currency market?

Wednesday, March 2, 2011

There are several investment vehicles but one of the world largest participants is the U.S. bond market where over $800 billion on average is traded daily and in the worldwide market overall is $80 trillion is traded. When the U.S. session opens early in the morning eastern standard time and the actual data is released from the economic indicators, you will see immediately the volatility in the volume of buying and selling pressures that weigh heavily on the dollar index. An example of this could be – “the country is in an inflationary market pressure or deflationary market pressure. Is there more hawkish or dovish comments from the central banks?” Another example is when following the 10-year treasuries which has a direct relation to the dollar index. This will start...

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