I was looking at this formulas:
USD_INDEX= 50.14348112 × EURUSD^-0.576 × USDJPY^0.136 × GBPUSD^-0.119 × USDCAD^0.091 × USDSEK^0.042 × USDCHF^0.036
and
EUR_INDEX = 34.38805726 x (EURUSD^(0.3155) x EURGBP^(0.3056) x EURJPY^(0.1891) x EURCHF^(0.1113) x EURSEK^(0.0785))
I was wondering why those currencies where chosen and how could I calculate, for example, the USD_INDEX if I use other currency pairs? For example:
USD_INDEX = CONST * EURUSD^A * GBPUSD^B * USDJPY^C * USDCAD^D * AUDUSD^E * NZDUSD^F * USDCHF^G
How could I determine/estimate CONST, A, B, C, D, E, F
and G
?
Also, I was kinda surprised that for USD_INDEX
the EURUSD
constant was -0.576
and the EUR_INDEX
the EURUSD constant was 0.3155
. I would have expected that the second one was 1 minus the first one, so the sum of both of them adds 1.
JPY_INDEX
handled? Because, as far as I understood, it would be something likeJPY_INDEX = 1/(NZDJPY * CHFJPY * EURJPY * GBPJPY * USDJPY * CADJPY * AUDJPY)
and all their respective exponents, right? $\endgroup$