The currency index tool provides a view of general trends in the money market. It tracks the performance of each of the selected currencies against a basket of its most liquid peers by aggregating its exchange rate moves into an easy-to-understand foreign exchange index. Thus each index represents a string of average changes of rates compared to closing values for a fixed base date. These changes, or returns, are expressed in percentage, with the values of the index on a 100-day basis. As a result, a value less than 100% implies a decrease relative to the base date, and a value increase greater than 100%.
The currencies available in the instrument are Euro (EUR), Pound (GBP), Swiss Franc (CHF), US Dollar (USD), and Yen (JPY). Pairs used in calculating a specific index always include the respective currency as the base currency, even if the standard notation lists it as the second. Thus an increase in the index always indicates a strengthening of the currency against its peers, while a decrease indicates a weakening.