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Currency strength information


Currency strength expresses the value of currency. For economists, it is often calculated as purchasing power,[1] while for financial traders, it can be described as an indicator, reflecting many factors related to the currency; for example, fundamental data, overall economic performance (stability) or interest rates.[2][3] It can also be calculated from currency in relation to other currencies, usually using a pre-defined currency basket. A typical example of this method is the U.S. Dollar Index (USDX).[4]

  1. ^ MISES, Ludwig von. The Theory of Money and Credit. page 97. United States of America : Yale University Press, 1953.
  2. ^ Barrington, Richard. "What Determines The Strength Of A Currency?". Forbes. Retrieved 2021-01-27.
  3. ^ O'KEEFE, Ryan. Making Money in Forex: Trade Like a Pro Without Giving Up Your Day Job. page 42 .John Wiley and Sons, 2010
  4. ^ Twomey, Brian (2011-10-04). Inside the Currency Market: Mechanics, Valuation and Strategies. John Wiley & Sons. ISBN 978-1-118-14935-5.

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