EUR/USD vs Dollar Index
EUR/USD traded at 1.1719 on April 24, 2026, up 1.4 percent over the month and 3.1 percent year-on-year. The DXY closed at 98.56, down 1.0 percent on the month and 0.9 percent year-on-year.
Also known as: EUR/USD (euro dollar, EURUSD) · Trade-Weighted Dollar (Broad) (trade-weighted dollar, USD index broad)
Why This Comparison Matters
EUR/USD traded at 1.1719 on April 24, 2026, up 1.4 percent over the month and 3.1 percent year-on-year. The DXY closed at 98.56, down 1.0 percent on the month and 0.9 percent year-on-year. Both measures move in mirror image because EUR/USD is 57.6 percent of the DXY basket. The Fed-ECB rate gap stood at 160 basis points (Fed funds at 3.50 to 3.75 percent versus ECB main refinancing rate at 2.15 percent) following the ECB's March 2026 hold. The pair is the cleanest proxy for transatlantic monetary policy divergence and one of the most-traded FX relationships in the world, with daily volume above $400 billion.
EUR/USD and the Two Dollar Indices
EUR/USD measures the price of one euro in US dollars on the spot FX market, published continuously by interbank trading and by the ECB at 14:15 CET. A reading of 1.17 means one euro buys 1.17 US dollars. The DXY (US Dollar Index, ticker DTWEXBGS in FRED for the broad version) is a weighted basket of major foreign currencies measured against the dollar. Two versions are commonly cited: the original ICE DXY (euro 57.6 percent, JPY 13.6 percent, GBP 11.9 percent, CAD 9.1 percent, SEK 4.2 percent, CHF 3.6 percent), and the Federal Reserve's broad nominal dollar index (DTWEXBGS) which weights 26 currencies by trade volume.
The two measures move closely together but diverge during emerging market stress (when the broad index moves more than DXY) and during specific G10 episodes (when DXY moves more). The April 2026 levels: ICE DXY around 98.56, FRED broad TWEX similar but slightly higher around 122 on its different scale. EUR/USD at 1.17 is the single most informative input to either index.
Why EUR/USD Drives the Dollar Index
At 57.6 percent weight in the ICE DXY basket, the euro is by far the largest component. A 1 percent move in EUR/USD translates almost mechanically to a 0.58 percent move in DXY in the opposite direction (EUR/USD up means DXY down). The next-largest component, JPY at 13.6 percent, contributes about a quarter as much per percentage move.
This weighting reflects the post-1973 Bretton Woods composition decision, which gave the dollar index a heavy euro tilt that has not been updated to reflect changing trade flows (China is the largest US trading partner but the renminbi is not in DXY). The
Conditional Forward Response (Tail Events)
How Trade-Weighted Dollar (Broad) has historically behaved in the 5 sessions following a top-decile or bottom-decile daily move in EUR/USD. Computed from 1,243 aligned daily observations ending .
Following these triggers, Trade-Weighted Dollar (Broad) falls 0.10% on average over the next 5 sessions, versus an unconditional baseline of +0.02%. 124 qualifying events; Trade-Weighted Dollar (Broad) closed positive in 44% of them.
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Frequently Asked Questions
What is the current EUR/USD exchange rate?+
EUR/USD closed at 1.1719 on April 24, 2026, up 0.33 percent on the day, 1.39 percent over the past month, and 3.11 percent over the past 12 months. The pair has traded in a 1.05 to 1.18 range through 2025 to 2026, with the recent uptrend driven by the Fed-ECB rate gap narrowing from a 525 basis point peak in early 2024 to roughly 160 basis points in April 2026. The next major catalysts are the ECB's late-April policy meeting and the May 12 release of US April CPI data.
Why is the euro 57.6 percent of the dollar index?+
The DXY weights have not changed since 1999, when the euro replaced the legacy European currencies (Deutsche mark, French franc, Italian lira, Dutch guilder) at their combined weight. That combined weight reflected European economic significance to the US in the early 1970s when the index was created. The composition has not been updated for changing trade patterns, which is why the renminbi (China is the largest US trading partner) is not in DXY. The FRED broad trade-weighted dollar index (DTWEXBGS) corrects for this by weighting 26 currencies by current trade volume.
What is the difference between DXY and the broad dollar index?+
DXY (ICE Dollar Index) tracks 6 G10 currencies with fixed 1999 weights: euro 57.6 percent, JPY 13.6 percent, GBP 11.9 percent, CAD 9.1 percent, SEK 4.2 percent, CHF 3.6 percent. The FRED broad nominal dollar index (DTWEXBGS) tracks 26 currencies including major emerging markets (CNY, MXN, INR, BRL) with annually-updated trade-volume weights. The two are highly correlated but diverge when EM currencies move sharply or when CNY policy shifts. ICE DXY is the index quoted in financial news; DTWEXBGS is the more economically meaningful measure of overall dollar competitiveness.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.