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How to calculate individual currency strength!

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  • How to calculate individual currency strength!

    Hi peeps, does anyone here know how to calculate individual currency strength for instance like EUR, GBP, USD and any other currency? mind to tell me whats the formula...thanks ...

  • #2
    Big Mac index! not kidding. Its called purchasing power parity or ppp
    PPP Comparative Price Levels is done Monthly by the OECD
    It is a long-term valuation model
    maybe this forum perhaps
    http://fxtrade.oanda.com/community/fxmessage/ultimatebb.cgi?ubb=print_topic;f=15;t=003257

    Comment


    • #3
      I think you can use a simple formula like :

      C = Close of actual bar
      C1 = Close of 1 back bar

      ((C-C1)/C1)*100

      you does that for every pair of specific major and after you divide for number of pair that you summed up

      exemple :

      EUR =
      eurusd+
      eurgbp+
      eurcad+
      euraud+
      eurnzd+
      eurchf+
      eurcjpy+ (naturally all this pairs are calculate with forumla of before)

      ---------

      sum / 7

      you can also look to this site :

      Code:
      http://www.mataf.net/it/forex-charts/c-index#c_index
      Last edited by Prim; 24-04-11, 18:00.

      Comment


      • #4
        Originally posted by Prim View Post
        I think you can use a simple formula like :

        C = Close of actual bar
        C1 = Close of 1 back bar

        ((C-C1)/C1)*100

        you does that for every pair of specific major and after you divide for number of pair that you summed up

        exemple :

        EUR =
        eurusd+
        eurgbp+
        eurcad+
        euraud+
        eurnzd+
        eurchf+
        eurcjpy+ (naturally all this pairs are calculate with forumla of before)

        ---------

        sum / 7

        you can also look to this site :

        Code:
        http://www.mataf.net/it/forex-charts/c-index#c_index
        What if i want to calculate USD? eurusd,gbpusd...etc...thanks in advance

        Comment


        • #5
          When you want reverse pairs you do 1/pair so exemple 1 eurusd = 1.4560 and 1 usdeur = 1/1.4560 = 0,6868 . I missing to tell you that also here is avaible a table of percent change :

          Code:
          http://www.actionforex.com/markets/data/forex-top-movers-2007123134103/
          Last edited by Prim; 24-04-11, 21:44.

          Comment


          • #6
            Try a currency strength meter.

            This is considered a good one:

            http://indo-investasi.com/showthread.php/2131-FX4Caster?highlight=fx4caster

            Comment


            • #7
              The solutions are useful.

              Comment

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