The U.S. Dollar index reaches 99

The U.S. Dollar Index (DXY) tracks the strength of the dollar against a basket of major currencies. 
DXY 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 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 (EUR) 57.6% weight
• Japanese yen (JPY) 13.6% 
• Pound sterling (GBP) 11.9% 
• Canadian dollar (CAD) 9.1% 
• Swedish krona (SEK) 4.2% 
• Swiss franc (CHF) 3.6% 

The DXY index topped at 103.82 in January 2017

 1 year

Japanese yen

Dollar Index climbs again

The U.S. Dollar Index is up 0.3% at 95.53, looking for its fifth consecutive gain. The greenback built on yesterday's rally during the overnight session, hitting a high in early morning trade. 

The advance was due in part to weakness in the euro, but the Dollar Index backed off its best level of the day after notching a session high (95.74) just above its September high (95.74). The euro has recovered more than half of its decline, but it remains on course for its fifth consecutive loss, as the market's attention is drawn to Italy's fiscal standing once again, sending Italy's 10-yr BTP yield (3.475%) past the post-election high (3.388%).

EUR/USD: -0.26% to 1.1544

• Fifth consecutive decline for the euro
• Italy's Deputy Prime Minister Luigi Di Maio said the government will "not retreat even a millimeter" from its plan for a 2019 deficit of 2.4%. Mr. Di Maio added that the Italian government has no plans to leave the euro
• Eurozone August PPI +0.3% month-over-month (expected 0.2%; last 0.7%); +4.2% year-over-year (expected 3.9%; last 4.3%)
• Spain's September Unemployment Change 20,400 (expected 28,200; last 47,000)

GBP/USD: -0.47% to 1.2976

• 50-day moving average at 1.2978
• UK's September Construction PMI 52.1 (expected 52.8; last 52.9). September Nationwide HPI +0.3% month-over-month (expected 0.2%; last -0.5%); +2.0% year-over-year (expected 1.9%; last 2.0%)

USD/CHF: +0.25% to 0.9859

• Seventh consecutive advance for the dollar

USD/JPY: -0.21% to 113.75

• Action pauses near November high (114.74)
• Japan's September Household Confidence 43.4 (expected 43.0; last 43.3)

USD/CNY: -0.01% to 6.868

• USD/CNH: -0.04% to 6.884
• Golden Week in China

USD/INR: -0.13% to 73.33

• Mahatma Gandhi Jayanthi in India

USD/RUB: +0.49% to 65.31

USD/TRY: +0.70% to 5.977

• 50-day moving average at 5.9758

USD/BRL: -2.75% to 3.907

• 50-day moving average at 3.976
• Brazil's August Industrial Production -0.3% month-over-month (expected 0.2%; last -0.1%); +2.0% year-over-year (expected 3.2%; last 4.2%). September IPC-Fipe Inflation Index +0.39% month-over-month (expected 0.40%; last 0.41%)

USD/ARS: -3.55% to 37.99

USD/MXN: +0.30% to 18.77

• Session high (18.87) notched just below 50-day moving average (18.88)

USD/ZAR: +0.91% to 14.34

• Action remains near 50-day moving average (14.28)
• Growing speculation that South Africa may need to ask the IMF for assistance

USD/CAD: +0.02% to 1.2818

AUD/USD: -0.46% to 0.7187

• Australia's September AIG Manufacturing Index 59.0 (last 56.7)

NZD/USD: +0.05% to 0.6597

• New Zealand's GDT Price Index -1.9% (last -1.3%)

Goldman Sachs: U.S. economic expansion to continue

In a note from Goldman's David Kostin issued on Tuesday morning, the company says it expects the U.S. economic expansion to continue in important areas such as housing, the labor market, and consumer spending. 

The team is going to keep a close eye on big data releases next week, including ISM manufacturing and one of the most important job reports in a while. Despite its confidence that spillover effects will be limited, Goldman is recommending stocks that have limited exposure to the global turmoil.

 Simply put, firms with high U.S. sales will experience limited impact on their top and bottom line from economic weakness in China. In Exhibit 17 we highlight a list of 25 stocks that have declined in price roughly twice as much as the S&P 500 since the index hit a high in May and also generate nearly all their sales domestically.

• According to the note, stocks with the highest U.S. revenue exposure have been significantly outperforming those with the highest international exposure. Goldman expects this trend to continue. 

Strong U.S. dollar hurting American exporters

In order to determine which U.S. companies could be hurt most from the strong dollar, we sorted the S&P 500 members by non-U.S. sales as a percent of total sales. Coke bottler Coca-Cola Enterprises and cigarette maker Philip Morris International share first place with 100 percent of sales occurring outside the U.S.

Largest U.S. exporters (non-US sales > 80% total sales):

• CCE 100%
• PM 100%
• TAP 97%
• LRCX 85%
• AVP 85%
• JBL 85%
• MAR 84%
• ALTR 83%
• SNDK 82%
• AMAT 82%

Non-US sales between 70% and 80% of total sales, exporters in alphabetical order:
AES Corp. (AES), Aflac Inc. (AFL), Diamond Offshore Drilling Inc. (DO), Linear Tech Corp. (LLTC), LSI Corp. (LSI), Mead Johnson Nutrition Co. (MJN), Microchip Technonolgy Inc. (MCHP), Mondelez International Inc. (MDLZ), NVIDIA Corp. (NVDA), Western Digital Corp. (WDC).

US exporters lose as $ falls (all above tickers in alphabetical order ):
AES AFL ALTR AMAT AVP CCE DO LLTC LRCX JBL MAR PM LSI MJN MCHP MDLZ NVDA SNDK TAP WDC

All charts / today's gains / finviz (opens new window) http://finviz.com/screener.ashx?v=211&ta=0&o=-change&t=AES%20AFL%20ALTR%20AMAT%20AVP%20CCE%20DO%20LLTC%20LRCX%20JBL%20MAR%20PM%20LSI%20MJN%20MCHP%20MDLZ%20NVDA%20SNDK%20TAP%20WDC