Euro

I see a lot of headlines today about the weak euro boosting the dollar. Problems in Europe have resurfaced, not that they ever went away, and global jitters are back in general. But look at this chart:

This is the Euro index (E) - a basket of currencies vs. the euro just like the US dollar index (DX) is a basket vs. the greenback. But E is not the opposite of DX. And they do not pay homage to each other in the same way.

In English, DX is half weighted to the euro but E is only 1/3 weighted to the dollar and just about the same weight to sterling.

So, to say the dollar is getting boosted by the euro is not quite right. The E index is flat on the day as I write this and even spent a good chunk of the  European day in the black.