What is DXY and why do traders pay attention to this index on December 24?

On December 24th, the DXY (U.S. Dollar Index) closed at 97.941, reflecting the instability of major currencies in the global market. This is a quite special day as many markets are preparing to enter the year-end holiday.

Changes in currency values

During this trading session, investors observed a clear divergence among major currencies. The euro weakened to 1.1775 USD, while the British pound also declined to 1.3496 USD. In Asia, the Japanese yen continued its downward trend with an exchange rate of 156.02 yen per 1 USD.

However, not all currencies fell. Bright spots came from Northern Europe: the Swiss franc increased to 0.7886, and the Swedish krona continued its upward trend at 9.1713. Conversely, the Canadian dollar weakened, dropping to 1.3676.

What is DXY and its importance

The DXY index measures the strength of the US dollar against a basket of other major currencies. It is an important tool that helps traders better understand the overall trend of the currency markets. When DXY rises, it usually indicates that the US dollar is strengthening against other currencies.

Market sentiment in the context of altcoins

In addition to fluctuations in traditional currency markets, crypto market participants are closely monitoring the Fear & Greed Index to assess market sentiment. The current environment shows caution from investors, with fear levels still significant.

This reality indicates that traders are navigating a complex phase, as volatility appears simultaneously in both traditional and digital markets. This instability can create both opportunities and risks for those who know how to read market signals.