Dollar Momentum Index
The world's reserve currency as a macro signal.
DXMI measures the momentum and regime of the US dollar across major currency pairs, with emphasis on the dollar's role as a global liquidity barometer rather than a simple FX trade.
The Dollar Momentum Index (DXMI) measures the strength and directionality of the US dollar relative to a trade-weighted basket of major currencies — EUR, JPY, GBP, CAD, AUD, and CHF. DXMI emphasizes momentum (trend strength and persistence) rather than the dollar level alone, because sustained strength has different macro implications than a brief spike. A high DXMI indicates a strong, trending dollar; a low reading indicates a weak or range-bound dollar.
The dollar is the world's primary reserve currency and the denomination for most global commodity prices and trade finance. A strong dollar is associated with tighter global financial conditions: dollar-denominated debt becomes more expensive for foreign borrowers, USD-priced commodities face pressure, and US multinationals' foreign revenues translate into fewer dollars. DXMI measures the dollar's current momentum regime; these associations are observed relationships, not forecasts.
Dollar strength and global liquidity tend to move inversely: when the dollar strengthens, dollar-denominated capital tends to flow back toward the US, and borrowers with dollar liabilities face higher refinancing costs. DXMI measures dollar momentum as a barometer of this dynamic. It is objective context, not a directional trade recommendation.
MarketSchema classifies DXMI above 65 as strong dollar momentum and above 80 as a regime comparable to 2014–2015, 2018, and 2022. DXMI below 35 indicates a weakening dollar. These bands classify the current reading; MarketSchema does not attach a forecast of EM, commodity, or equity outcomes to any band.