Euro Currency Index
The Euro Currency Index (EUR_I) is a key figure that compares the value of the euro using a currency basket made up of four currencies. The index is the arithmetically weighted average compared to these currencies.
concept
| currency | code | Weighting in% |
|---|---|---|
| U.S. dollar | USD | 25th |
| British pound | GBP | 25th |
| Japanese yen | JPY | 25th |
| Swiss franc | CHF | 25th |
The Euro Currency Index (EUR_I) represents the arithmetic ratio of four key currencies in comparison to the euro: US dollars , British pounds , Japanese yen and Swiss francs . All currencies are expressed in units of measure of currency per euro. The index was launched in 2004 by the Stooq.com stock exchange portal. The base value is 100 points on January 4, 1971. Before the European common currency was introduced on January 1, 1999, an exchange rate of 1 euro = 1.95583 German marks was calculated.
The strength or weakness of the euro can be read from the course of the Euro Currency Index. A rising index means an appreciation of the euro against the currencies in the currency basket , a falling index means a depreciation. Connections to commodity indices are recognizable. A rising Euro Currency Index means falling commodity prices. This is especially true for agricultural commodities and the price of oil . Even the precious metal prices ( gold price , silver price ) correlate with the index.
The trade-weighted Euro Effective Exchange Rate Index of the European Central Bank (ECB) is comparable to the arithmetically weighted Euro Currency Index . Compared to the Euro Currency Index, the ECB's index measures the value of the euro much more accurately, as the weighting of the ECB represents the competitiveness of European goods compared to other countries and trading partners.
Former Euro Currency Indices
Dow Jones & Company
On September 13, 2005, Dow Jones & Company released two versions of the index, the Dow Jones Euro Currency Index (DJEURO) and the Dow Jones Euro Currency 5 Index (DJEURO5). The base values were 100 points on December 31, 1998.
- Dow Jones Euro Currency Index: It measured changes in the value of the euro against 10 currencies: the US dollar, Japanese yen, British pound, Swiss franc, Russian ruble , Swedish krona , South Korean won , Canadian dollar , New Taiwan dollar and Australian dollar .
- Dow Jones Euro Currency 5 Index: It was a key figure that compared the value of the euro using a basket of five of the world's most liquid currencies: US dollars, Japanese yen, British pounds, Swiss francs and Australian dollars.
The calculation of the Dow Jones Euro Currency 5 Index was discontinued on August 29, 2008 (last value 121.97 points) and the calculation of the Dow Jones Euro Currency Index on January 9, 2009 (last value 119.41 points).
New York Board of Trade
The Euro Currency Index (ECX, also EURX or EXY) was launched on January 13, 2006 by the New York Board of Trade (NYBOT) and was calculated back to 2001. In 2007, the Intercontinental Exchange (ICE), based in Atlanta (USA), took over the NYBOT and changed the name of the exchange to ICE Futures US The index was a key figure that compared the value of the euro using a basket of five currencies: US dollars ( 31.55 percent), British pound (30.56 percent), Japanese yen (18.91 percent), Swiss franc (11.13 percent) and Swedish krona (7.85 percent).
The ECX was the geometrically weighted average compared to these currencies. The formula used for the calculation was 34.38805726 multiplied by the product of all the constituents in the currency basket raised to an exponent equal to their percentage weighting (ECXt = 34.38805726 x (USDt) - 0.3155 x (GBPt) 0 , 3056 x (JPYt) - 0.1891 x (CHFt) 0.1113 x (SEKt) 0.0785).
The all-time low was calculated on July 6, 2001 with 83.36 points and the all-time high on July 14, 2008 with 123.82 points. On May 20, 2011, the ICE Futures US futures exchange ended trading in futures and options on the index. On July 28, 2011, the calculation of the ICE Euro Currency Index was also stopped (the last value was 108.88 points).
history
Historical overview
The Euro Currency Index started on January 4, 1971 at 100 points. Before the European common currency was introduced on January 1, 1999, an exchange rate of 1 euro = 1.95583 German marks was calculated.
On April 19, 1971, the Euro Currency Index hit an all-time low of 99.67 points. By December 3, 1979, the index rose 68.0 percent to 167.43 points. With the devaluation of the D-Mark against the most important currencies, the index fell until the mid-1980s. On May 3, 1985 the Euro Currency Index was 122.26 points, 27.0 percent lower. The strength of the D-Mark against almost all world currencies caused the index to rise again in the following years. On October 5, 1992 a value of 195.98 points was determined. The increase since 1985 has been 60.3 percent. On October 25, 2000, the index closed at 130.83 points, 33.2 percent lower.
In 2000 the euro began to move upwards for several years. On December 29, 2008 the index marked an all-time high of 209.65 points. The profit since 2000 is 60.2 percent. In the course of the international financial crisis , which had its origin in the US real estate crisis in the summer of 2007, the index began to decline. On February 6, 2009 a value of 187.84 points was determined. In the eight months that followed, the European single currency recovered from its lows. On October 13, 2009, the index rose to 208.45 points, close to its all-time high.
A budget crisis in several member states of the euro zone led to the outbreak of the euro crisis in 2010 . Greece is particularly affected (see Greek sovereign debt crisis from 2010 ), but also other countries such as Ireland , Spain , Italy and Portugal . The weakness of the euro against almost all world currencies caused the index to fall to 175.31 points by June 29, 2010. In the months that followed, the European Stabilization Mechanism was developed, which provides for mutual aid measures in an emergency in order to avoid the national bankruptcy of member states. By May 4, 2011, the index rose to a value of 200.20 points. With the intensification of the sovereign debt crisis in the euro area, the Euro Currency Index fell to 168.38 points on July 24, 2012, its lowest level since March 29, 2006. Compared to the all-time high of December 29, 2008, this corresponds to a decline of 19.7 percent .
Annual development
The table shows the annual high, low and closing levels of the Euro Currency Index calculated back to 1971.
| year | Peak | Lowest point | Final stand |
|---|---|---|---|
| 1971 | 105.76 | 99.67 | 103.79 |
| 1972 | 106.91 | 101.56 | 106.28 |
| 1973 | 133.42 | 105.57 | 120.13 |
| 1974 | 130.80 | 117.11 | 130.45 |
| 1975 | 135.29 | 124.48 | 126.66 |
| 1976 | 148.74 | 126.67 | 146.40 |
| 1977 | 149.30 | 141.95 | 146.82 |
| 1978 | 157.31 | 141.08 | 154.70 |
| 1979 | 167.43 | 149.97 | 164.67 |
| 1980 | 165.01 | 137.39 | 137.70 |
| 1981 | 138.94 | 124.77 | 133.45 |
| 1982 | 139.52 | 129.83 | 137.91 |
| 1983 | 142.93 | 126.48 | 127.08 |
| 1984 | 133.20 | 123.55 | 126.24 |
| 1985 | 137.49 | 122.26 | 137.49 |
| 1986 | 162.47 | 137.02 | 162.47 |
| 1987 | 169.77 | 158.97 | 168.30 |
| 1988 | 167.61 | 150.35 | 155.18 |
| 1989 | 174.94 | 150.48 | 174.76 |
| 1990 | 179.22 | 168.80 | 177.45 |
| 1991 | 179.08 | 161.18 | 176.62 |
| 1992 | 195.98 | 169.03 | 183.87 |
| 1993 | 187.92 | 166.07 | 170.41 |
| 1994 | 181.33 | 168.27 | 178.22 |
| 1995 | 189.22 | 177.77 | 184.99 |
| 1996 | 187.67 | 176.47 | 177.83 |
| 1997 | 178.89 | 154.92 | 162.30 |
| 1998 | 175.18 | 158.28 | 168.33 |
| 1999 | 170.77 | 146.99 | 147.23 |
| 2000 | 150.34 | 130.83 | 144.25 |
| 2001 | 147.75 | 135.56 | 141.40 |
| 2002 | 154.17 | 138.90 | 153.79 |
| 2003 | 172.59 | 152.55 | 172.06 |
| 2004 | 178.19 | 162.30 | 177.23 |
| 2005 | 177.49 | 163.65 | 167.23 |
| 2006 | 175.37 | 166.24 | 174.84 |
| 2007 | 191.00 | 171.38 | 189.41 |
| 2008 | 209.65 | 177.50 | 204.78 |
| 2009 | 208.45 | 187.84 | 199.47 |
| 2010 | 202.21 | 175.31 | 186.11 |
| 2011 | 200.24 | 179.67 | 179.89 |
| 2012¹ | 185.17 | 168.38 | 180.38 |
¹ December 31, 2012
Web links
Individual evidence
- ↑ Stooq: Profile
- ↑ Dow Jones & Company: Dow Jones Indexes to Launch Euro Currency Indexes ( Memento of the original from February 10, 2012 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. , dated September 13, 2005
- ↑ Finances100: Last value of the Dow Jones Euro Currency 5 Index , from August 29, 2008
- ↑ Finances100: Last value of the Dow Jones Euro Currency Index , from January 9, 2009
- ↑ Forex Limited: ICE Euro Currency Index ( Memento of the original of July 29, 2014 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ About.com: The NYBOT Changes Name to ICE Futures US , September 4, 2007
- ↑ Swiss Futures and Options Association: Swiss Derivatives Review 30 - Spring 2006 ( Memento of the original from March 27, 2012 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 5.7 MB)
- ↑ ICE Futures US: ICE Futures Euro Index Rules ( Memento of the original from March 4, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 75 kB)
- ↑ ICE Futures US: Exchange To Delist Euro Index Futures and Options Contracts (PDF; 80 kB), from May 20, 2011
- ↑ FinData: Last value of the ICE Euro Currency Index , from July 28, 2011
- ↑ Stooq: Historical Prices
