Palanor: US Dollar Strength

The dollar is the world's price; everything else is denominated in it. When the dollar strengthens, emerging-market borrowing tightens, commodity bills inflate, and capital flees back home. When it weakens, the opposite — risk appetite expands and emerging-market assets reflate. This index reads the broad dollar (DXY) against its principal Asian and European counterparties — yuan, yen, won, rupee, euro. The weighting tilts toward Asia, reflecting where the marginal trade and capital relationship lives. Quantile bands: - 0.0–0.2: dollar weak, regime-shifting (rare — usually marks the back end of a cycle) - 0.2–0.4: normal weakness, EM-favorable - 0.4–0.6: watchful — directional uncertainty - 0.6–0.8: strong dollar, EM stress rising - 0.8–1.0: reserve-currency flight, systemic stress (March 2020, late 2022 peaks)

Components & Weights

Every component, every weight. The 30-day spark shows how the underlying series has moved; the transform column shows how it converts to a comparable scale before weighting. Direction indicates whether rising values raise or lower the index.

Historical

24-month history of this index. The composite is recomputed daily; values are stored with timestamps.

References

• FRED — Federal Reserve Economic Data, St. Louis Fed. https://fred.stlouisfed.org/
• Atlanta Fed — Wage Growth Tracker and Sticky-Price CPI. https://www.atlantafed.org/research
• Cleveland Fed — Model-based inflation expectations. https://www.clevelandfed.org/our-research/indicators-and-data
• OECD — Composite Consumer Confidence Indicator. https://data.oecd.org/leadind/consumer-confidence-index-cci.htm
• CNN Business — Fear & Greed Index. https://www.cnn.com/markets/fear-and-greed
• Google Trends — interest over time. https://trends.google.com/