March, 2020

Mini U.S. Dollar Index®
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  • The dollar began March on a down note as the fall in US rates took a toll on the greenback.  However, the global spread sparked a flight-to-quality rally into the USD.  The ICE U.S. Dollar Index® started the month around the 98 level, tumbling all the way below 95 a week later.  Then, as COVID-19 took hold, USDX rose over the next two weeks to almost 104 (103.96), a level last seen in 2002.  The index sold off for the remainder of the month, ending right around 100.
  • Versus individual major currencies, the dollar had a similar performance.  During March, EUR traded in a 9 cent absolute range and experienced a high degree of volatility within that range.  GBP had a particularly wild ride, trading as high as $1.32 and as low as $1.14, ending the month at $1.24. JPY began at 108.5, rose all the way to 101.18 per dollar, only to fall back 111.5 later in the month, and ending up back around 108.  Against the dollar bloc, USD hit and maintained multi-year highs versus CAD, AUD, and NZD.  
  • Elsewhere in the world, CNY dropped back below 7 per dollar and stayed there, ending the month at 7.08.  With the collapse of the price of oil, NOK fell over 25% in the first two weeks of the month, hitting an all-time of above 12 per dollar and then settled in around 10.75 at month end.  Oil also pummeled MXN, which fell a similar percentage to 25.44 per USD, a lifetime low, before recovering to the 24 area.  Emerging market currencies performed particularly poorly, with the dollar hitting 52-week or all-time highs against most of them including TRY, THB, HUF, LKR, INR, BRL, COP and CLP.
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
  • Helps achieve cost efficiency
  • Is accessible 22 hours a day
Customers in Asia can benefit from ICE Futures Singapore’s secure, regulated futures trading and clearing services. With local regulation and regional trading opportunities across financial and commodity futures, you can access markets locally that trade around the world.
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