August 2020

Mini U.S. Dollar Index®
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  • The dollar turned in its worst August performance in five years. It is the fourth month in a row the greenback has posted a decline, the longest streak in three years. Much of the fall came in the last few trading days of the month after Fed Chairman Powell discussed keeping interest rates lower for longer and potential resultant inflation. The ICE U.S. Dollar Index® (USDX) fell during August to its lowest level since May 2018, trading briefly below 92 on August 31 before recovering. For the month, the index declined 1.39%.
  • Several currencies rose to multi-year highs versus USD in August. In Europe, EUR climbed about a 1½ cents on month to over $1.1950, the highest level since May 2018. Similarly, CHF hit a six-year high on the last trading day of the month, with the franc briefly moving through 0.90. NOK rose to an 18-month high of 8.67, just five months after touching an all-time low of 12.13 per dollar. Finally, GBP had one of the better absolute performances versus USD, moving high by almost 3 cents to $1.3375.     
  • In Asia-Pacific, the dollar had more of a mixed performance. JPY ended the month almost unchanged against the dollar, but the yen experienced significant intra-month movement punctuated by Prime Minister Abe’ resignation for health reasons on the 28th. Better economic numbers gave a boost to CNY, which left the psychologically important 7 per USD level behind in July and steadily improved throughout August, ending at 6.85. NZD and AUD posted solid gains against USD, up 1½ and 2½ cents respectively.
  • Elsewhere, CAD picked up about 2½ cents on USD as oil and other commodity prices continued to improve in August. The dollar best performance came against emerging market currencies, but even here, USD gains weren’t uniform. MXN posted a small monthly on better trade news. Likewise, INR showed a slight gain despite weaker than expected economic number and rising COVID-19 cases. TRY continued to slide, falling about 5% for the month to 7.40 per dollar. BRL lost 4% to the dollar as it too has rising COVID-19 cases plus economic woes pushing interest rates in Brazil to record lows.
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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