The work scheme is the calculation of the strength of the US Dollar by making aggregation of bilateral rates of currency pairs into one number, and afterward, weighting for the included currencies. One of the examples of comprehensive measures for a certain currency is the USD index, which consists of a wide range of currencies against the US Dollar. EURUSD, EURJPY, EURGBP, EURCHF, etc.) and then put those values together to define the overall result for the Euro. Simplified strength meters may not use any average weighting, while more advanced ones like ours apply their own weightings for more trustable evaluations.įor example, to calculate the strength of the EUR currency, the currency strength meter would take into account the strength of all pairs containing the EUR (e.g. Currency strength indicator uses the foreign exchange rates of various currency pairs to calculate an aggregated, comparable strength of every single currency. In simple terms, a currency strength meter is a visual indicator that shows which currencies are strong at the moment, and which currencies are weak. So what is a currency strength meter, or also called currency strength indicator exactly and how does it look?
