December, 2019
Mini U.S. Dollar Index®
- The dollar ended the year on better trade news and a stronger global growth outlook. The ICE U.S. Dollar Index® ended December down 2 points to close below 96.50, a six-month low. An all-time high for US equities and narrowing yield differentials with other developed countries couldn’t help the greenback this month.
- With Brexit a near certainty following the UK’s Conservative Party win, the GBP was pushed higher by six cents mid-month, topping out above $1.35, an 18-month high. However, sterling euphoria was tempered into month end as it fell back to the mid-$1.32 area. EUR continued to improve in December, assisted by less negative interest rates in the Eurozone. The Euro closed the month above $1.12 for the first time since August 13.
- The passage of NAFTA’s replacement in the U.S. House of Representatives sparked a rally in CAD, with the loonie moving below 1.30 vs. USD for the first time in 14 months. MXN also did better, gaining half a peso on the dollar, to close below 19.
- The agreement of a “phase 1” trade deal between the US and China propelled CNY back below the 7 to the USD level. Despite negative headlines, both the AUD and NZD rose over 2 cents vs. USD in December. A softening of the negative rate stance in Japan had little impact on dollar/yen; JPY traded in a just a 1 yen range during 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
- 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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