Cryptocurrency exchange FTX has listed perpetual futures linked to the US dollar spot index, and is expanding its business scope into the field of foreign exchange derivatives trading.

The new FTX perpetual contracts will be based on the so-called FTX Dollar Spot Index, which is designed to track the movements of four major currencies, including the Euro, Yen, Canadian Dollar and British Pound against the US Dollar.

The FTX USD Spot Index (FTXDXY) is calculated as follows: 35.7*EURUSD^-0.6*JPYUSD^-0.2*CADUSD^-0.1*GBPUSD^-0.1

On the other hand, the volatility of the forex market has increased significantly recently. Driven by tightening monetary policy and rapidly rising interest rates in the United States, the US dollar is currently at its highest level since 2022, especially after the Federal Reserve raised interest rates several times.

The US Dollar Index broke above the 111 level, updated a new high since 2002 and is currently hovering around the all-time high of 111.76.

Non-US currencies generally fell. As the dominant currency in world trade and finance, the fluctuation of the US dollar will have a major impact on the world economy.

Since Bitcoin (BTC) is still considered a risky asset against inflation, many traders believe that a weaker dollar is needed for Bitcoin to rise.

In contrast, the pound fluctuated amid the chaotic rollout of Prime Minister Liz Truss’s economic plan.

The British government on September 23 unveiled its most sweeping tax cuts since 1972 before making a U-turn by abandoning its plan. The administration tried to cut taxes on workers’ and businesses’ wages to boost the economy as it heads into recession, prompting investors to sterling and dumped government bonds.

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