Trendsinvesting Currency Indices

 

TrendsInvesting created the indices for 18 currencies:

  • INDEXUSD
  • INDEXEUR
  • INDEXJPY
  • INDEXGBP
  • INDEXAUD
  • INDEXCHF
  • INDEXCAD
  • INDEXMXN
  • INDEXNZD
  • INDEXSEK
  • INDEXHKD
  • INDEXNOK
  • INDEXTRY
  • INDEXZAR
  • INDEXDKK
  • INDEXPLN
  • INDEXHUF
  • INDEXCZK

The indices measure a currency performance in relation to the seven most traded currencies in the world: the U.S. Dollar, the Euro, the Japanese Yen, the Pound Sterling, the Australian Dollar, the Swiss Franc and the Canadian Dollar. The indices are weighted by each of the currency’s percentage share of the average daily foreign exchange market turnover in April 2013. The statistics were published by the Bank for International Settlements:

Triennial Central Bank Survey Foreign exchange turnover in April 2013: preliminary global results, Monetary and Economic Department, Bank for International Settlements 2013 http://www.bis.org/publ/rpfx13fx.pdf

 

The indices’ value for January 1st 2000 equals 100.00:

INDEXUSD01-01-2000 = 100.00

INDEXEUR01-01-2000 = 100.00

INDEXJPY01-01-2000 = 100.00

INDEXGBP01-01-2000 = 100.00

INDEXAUD01-01-2000 = 100.00

INDEXCHF01-01-2000 = 100.00

INDEXCAD01-01-2000 = 100.00

INDEXMXN01-01-2000 = 100.00

INDEXNZD01-01-2000 = 100.00

INDEXSEK01-01-2000 = 100.00

INDEXHKD01-01-2000 = 100.00

INDEXNOK01-01-2000 = 100.00

INDEXTRY01-01-2000 = 100.00

INDEXZAR01-01-2000 = 100.00

INDEXDKK01-01-2000 = 100.00

INDEXPLN01-01-2000 = 100.00

INDEXHUF01-01-2000 = 100.00

INDEXCZK01-01-2000 = 100.00

 

For any moment since January 1st 2000 our indices are calculated as follows:

currency indices part 1currency indices part 2

 

We consider the TrendsInvesting indices to be more accurate than any other well-known indices, such as:

  • Euro Currency Index (EUR_I), which uses only four currencies (USD, GBP, JPY, CHF) and gives them equal weights;
  • U.S. Dollar Index (USDX), which has a currency basket unchanged since 1973 (except subsuming former European currencies by the euro in 1999).

The Trade Weighted U.S. Dollar Indices offer a broader basket of currencies (the Broad Index) but weights are based on the U.S. trade data, because these indices are designed to measure the United States’ international competitiveness.

Our indices are weighted by each of the currency’s percentage share of the FOREX turnover and are designed to measure the performance of the currencies on the foreign exchange market.

 

 

See also: