The Constant value is calculated to price the basket to = 1.0000 as of 01/01/2014
Performance
Today
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This Week
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This Month
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What is this Index?
The VARIANSE US Dollar Index measures the performance of the US Dollar against a basket of currencies: EUR, JPY, GBP, CAD and CHF
The Index is measure of the value of the U.S. dollar relative to the majority of its most significant trading partners.
This index is similar to the USD Trade-Weighted Index, which also utilises the exchange rates from the same major currencies, however the composition and weighting is different
Our Index has been incepted with a base value of 1.0000 from 01/01/2014 which means that a value of 1.2000 would
imply that the U.S. dollar experienced a 20% increase in value over the time period.
How is the FX Index Calculated?
Now for the maths...
1. First we calculate the Geometric Mean (GM) of the Basket
where:
N = Number of components
Pair N = Market price of Nth Pair
2. Then we multiply the value A by the constant factor*
*A constant factor is used to turn the basket into an
index which sets the value of the basket to usually
equal 1 or 100 at a pre-determined date in the past,
this allows for easier tracking and simpler pricing.
