June, 2020

Mini U.S. Dollar Index®
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  • It was another relatively calm month for the dollar. USD began June the same as it ended May, on a down note. Economic reopenings in the U.S. propelled equities higher. However, as COVID-19 infections soared in the U.S., a flight-to-quality placed as floor under the dollar, followed by steady improvement to finish out June. The ICE U.S. Dollar Index® (USDX) started off June above 98 but it was the last time it saw that level. A two-week decline pushed USDX below 96 for the first time in three months. The remainder of the month saw a general improvement, pushing the index higher and closing out the month at 97.35.
  • European currencies improved as those countries emerged from COVID-19 lockdowns. EUR soared to a three-month high mid-month, rising to $1.1450 before falling back to below the $1.13 level. CHF gained as investors sought out safe havens, it too reaching a three-month high versus the dollar. Likewise, for the Scandinavian currencies, even NOK continued to recover from its all-time low three months ago as oil prices improved in June. GBP was somewhat of an exception. Early in the month, sterling climbed above $1.28 but, as the U.K. struggled with COVID-19, the currency fell below $1.23 and ended the month almost unchanged.
  • In Asia, rebounding economies had different impacts on local currencies. JPY weakened to start the month, trading above 110 per dollar. Like CHF, JPY benefitted from a flight-to-quality move, rallying over 4 yen only to give ground later in June. JPY ended the month against the dollar about where it started. CNY bounced back from May’s weakness as continued positive COVID-19 news allowed for a steady improvement versus USD throughout the month. Still, June was the third consecutive month that CNY remained above 7 per dollar.  AUD and NZD each had a 2-cent surge against the dollar early in June and they both managed to hold the gains throughout the month.
  • In Latin America, the dollar ended June better as many of those countries were experiencing their own COVID-19 infection surges, straining government resources. MXN weakened to 23 per dollar on the last day of the month, a six-week low. BRL ended the month at its low of 5.46 per dollar, 10% down from the June high and eliminating all its early month gains. Elsewhere, after some volatility at the beginning of June, TRY ended the month unchanged. IDR briefly traded inside 14,000 per dollar before falling back, but it still posted a 3% gain for the month..
Mini USDX® Front Month Performance (Current Year - Weekly) with Ichimoku Analysis

Hedging the U.S. Dollar in a Single Transaction

The Mini USDX® Futures contract offered by ICE Futures Singapore can be used to trade the ICE U.S. Dollar Index®. The ICE U.S. Dollar Index® (USDX®) futures contract is used by market participants to gain exposure to or hedge moves in the U.S. dollar relative to a basket of world currencies, in a single transaction.
  • Has a contract size of US $200 x index value
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