I don’t often talk about the Dollar Index because it’s heavily weighted toward the euro (57.6%). The best way to measure a currency is by measuring it against its trading partners.
The St. Louis Fed just published a 30-year chart of the US dollar, trade weighted.
Technically, the chart looks ready for a major breakdown after the fall below the triple-bottom in late 2011. Fundamentally, a fall is also highly likely because China is taking up an increasing share of trade and the yuan is appreciating. Other currencies that hold a large part of the trade-weighted index are CAD and EUR.
