The Currency Index tool measures changes in the value of the currency by tracking the exchange rates of five of the most liquid currencies (USD, EUR, GBP, JPY, CHF). The value of index is composed on an equally-weighted basket method which allocates the currency against its major counterparts over a selected period of time.
Such a methodology is optimal for understanding the strength or weakness of global Forex currencies. As many global currencies are used as a reserve or safe haven currency, the index tool allows you to assess the overall efficiency of your money savings. The end value of the index reflects the average return that is gained or lost if your currency portfolio consists of one single currency. By using the currency index tool, you can easily analyze and evaluate yearly, quarterly, monthly, weekly trends on the currency market.
The Currency Index includes the following input parameters:
• Start Date represents a beginning date from which calculations are to be started.
• Base Date represents a basic date which is used as equivalent for comparison. The value of index at the base date is always equal to 100%.
• Number of days is a number of days which are shown on the chart from a start date.
How to use: select start date, base date and number of days to proceed to calculations.