Correlation does not imply causation. However, the dollar is causal related to both observables: BTC/USD & DXY by definition. It is unlikey that those observables are not related when the dollar causes the money flow between these 2 spaces in which they operate by definition. BTC/USD & DXY can be causal related whilst exceptions may occur.
Challenges:
DXY: The U.S. Dollar Index 0.18% tracks the strength of the dollar against a basket of major currencies. ( DXY -0.48% ) originally was developed by the U.S. Federal Reserve in 1973 to provide an external bilateral trade-weighted average value of the U.S. dollar against global currencies. U.S. Dollar Index 0.18% goes up when the U.S. dollar gains "strength" (value), compared to other currencies. The following six currencies are used to calculate the index:
Euro 0.52% (EUR) 57.6% weight
Japanese yen -0.29% (JPY) 13.6% weight
Pound sterling 0.27% (GBP) 11.9% weight
Canadian dollar -0.15% (CAD) 9.1% weight
Swedish krona 0.50% ( SEK 1.55% ) 4.2% weight
Swiss franc 1.78% (CHF) 3.6% weight
Challenges:
- Which model predicts the causation with the highest probability in a dynamic way?
- How is the strength of the dollar observed as the causation of derivatives ?
- What attributes to flux between the operational spaces of the dollar?
DXY: The U.S. Dollar Index 0.18% tracks the strength of the dollar against a basket of major currencies. ( DXY -0.48% ) originally was developed by the U.S. Federal Reserve in 1973 to provide an external bilateral trade-weighted average value of the U.S. dollar against global currencies. U.S. Dollar Index 0.18% goes up when the U.S. dollar gains "strength" (value), compared to other currencies. The following six currencies are used to calculate the index:
Euro 0.52% (EUR) 57.6% weight
Japanese yen -0.29% (JPY) 13.6% weight
Pound sterling 0.27% (GBP) 11.9% weight
Canadian dollar -0.15% (CAD) 9.1% weight
Swedish krona 0.50% ( SEK 1.55% ) 4.2% weight
Swiss franc 1.78% (CHF) 3.6% weight
Comment:
tradecaptain.com/new...ctations-13-sep-2018 . DXY may rise within 1 year.
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