EUR/USD and the dollar index: how to read a stronger dollar

What this video covers

Two FRED charts, EUR/USD and the Fed’s broad trade-weighted dollar index, explain why a falling EUR/USD means a stronger dollar. It lists the three forces the page identifies behind dollar moves.

Sources and the longer explanation: EUR/USD and US Dollar Index History: Charts and Monthly Data.

How the visuals were made

In 0:49 the video moves through 6 scenes, including an animated line chart, “EUR/USD, US dollars per euro”, drawn from FRED series DEXUSEU from 2021-01; an animated line chart, “Nominal broad US dollar index (Jan 2006 = 100)”, drawn from FRED series DTWEXBGS (full history); a checklist, “What moves the dollar”; a side-by-side comparison of Fed broad index and ICE DXY. All graphics were rendered frame by frame by UXS; no stock footage, logos or faces are used.

Chapters

• 0:00 Currencies: EUR/USD falls? The dollar is stronger
• 0:05 EUR/USD, US dollars per euro
• 0:13 Nominal broad US dollar index (Jan 2006 = 100)
• 0:23 What moves the dollar
• 0:29 Two ways to measure the dollar
• 0:41 Risk note

Transcript

When EUR/USD falls, the dollar is getting stronger against the euro.

EUR/USD was 1.1154 on November 6, 2026, about 3.3% lower than a year earlier.

The Fed's broad dollar index, set to 100 in January 2006, was 121.88, roughly flat over the year.

What moves it: interest-rate differences, safe-haven buying in global stress, and trade and energy flows.

The Fed index is broader than the better-known DXY, which uses six currencies and gives the euro the biggest weight. That is why DXY and EUR/USD move almost as mirror images.

These are reference rates; your broker's prices include a spread. Educational only, not financial advice.