Hi everyone,
When the dollar index is trending down or up, typically the EURUSD instrument moves in opposite direction.
The last couple of weeks i have seen more and more the phenom of dollar index and EURUSD move i same direction, which for me means something fundamenta is not right, but how Can this happen? How Come that the EURUSD Can move i same Direction as the US dollar index ?
Anyone who Can explain why it is possible ?
Best regards
Jesper
That’s very often been true, historically, because of the correlation between the Euro and the Dollar Index (which is about 58%, and is by far the highest correlation between the Dollar Index and any other individual currency). When the USD strengthens, the Dollar Index rises, and of course the EUR/USD therefore [I]tends[/I] to fall, because of the increase in the value in the USD.
Because of changes in the relative value of the Euro, as well.
If the correlation between the Dollar Index and the Euro were 100%, then the two instruments would always move in perfect mirror-image to one another. But that [U]isn’t[/U] so: the correlation is under 60%, not 100%, and there are times when the changes in the value of the Euro outweigh the correlation, and they can both move in the same direction (though not to the same extent).
Does that help?
If it’s still confusing, this page may help you: [B]https://en.wikipedia.org/wiki/U.S._Dollar_Index[/B].
Ah so the correlation is only 60% at certain times. Thank you.
I have tried to find a Euro indicator, you know if there exists something like US Dollar index just for Euro ? .
Best regards 
The correlation itself doesn’t vary. It’s always 57.5%, if I remember correctly, because that’s the way the Dollar Index is calculated.
(At some future point, that may formally change - if the Euro’s troubles deepen, some people say.)
No; as far as I know, there isn’t a direct “Euro equivalent” of the Dollar Index which compares its value against a “fixed proportions basket” of other currencies.
For now, the dollar index is on a decline due to the US election. The US election is carrying along with it much uncertainty with Donald Trump and Hilary Clinton fairly dividing opinions. Traders are abandoning the US dollars for safe haven currencies like the Japanese yen.