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Global Currency Index is a economic analysis tool which represents a Single Global Currency Unit or Reserve Currency.

• “ Global Currency Index” is a barometer to measure overall relative global economic Cycle based on value of ten major global convertible currencies.
  
  
• Global Currency Index projects global economic cycle with global economic trend and suggest individual currency long term trend.
  
  
• Global Currency Index of individual currency fundamentally identifies the long term signals for major currency pair.

Global Currency Index is a unit derived by determining intrinsic value of 10 major convertible currencies. These ten convertible currencies are :

USD | EUR | GBP | JPY | CHF | CAD | AUD | NZD | HKD | SGD

Global Currency Index is done by pairing each currency with the other ten individual currencies in order to derive the value of that currency against the other nine individual currencies.

The Global Currency Index is the average of all 10 individual currencies index.

Global Currency Index is a valuable tool in Financial Industry and can be used in conjunction with other Fundamental Analysis and Technical Analysis.

How can Global Currency Index be useful to forex trader?

Forex trader and Global Currency Index

Forex trader applies Fundamental Analysis or Technical Analysis or both to determine a trading position .Global s Currency Index supports traders in determine direction to trade of a currency pair but not entry or exit points.

Global Currency Index explains the current global economic Cycle. Index is useful for economists, institutions, forex market, equity market, securities market, financial industries, traders and respective government authorities to understand their current economic situation compared to the overall global economy.

• Global Currency Index upward movement indicates a positive outlook of global net economic growth.

• Upward movement in Individual currency basket i.e. USD Currency Index indicates a positive outlook of net economy growth of USA.

• Global Currency Index downward movement indicates a negative outlook of global net economic growth.
  
  
• Downward movement in Individual currency basket i.e. USD Currency Index indicates a negative outlook of net economy growth of USA.
  
  Moving Average of Global Currency Index is a long term average of Global Currency Index that signals long term net global economic growth outlook.
  
  
• Global Currency Index greater than MA Global economic outlook is Positive.

• Global Currency Index less than MA Global economic outlook is Negative.

• When Global Currency Index crosses MA, it signifies a fundamental change of trend.

• Difference between Global Currency Index and MA signifies intensity of boom or burst in global economic scenario.

• Higher the difference, higher the volatility in value of currencies and economic uncertainty.

• Small difference between Global Currency Index and MA indicates stability in net global economics

• If MA is greater than Forex Metrics Currency Index:
  Increasing difference between MA and Forex Metrics Currency Index signifies severity in net global economic growth and recession/deflationary pressure.

• If MA is greater than Global Currency Index:
  Decreasing difference between MA and Global Currency Index signifies net global economic recovery and easing of recessional/deflationary pressure.

• If MA is less than Global Currency Index:
  Increasing difference between MA and Global Currency Index signifies boom in net global economic growth and rising inflationary pressure.

• If MA is less than Global Currency Index:
  Decreasing difference between MA and Global Currency Index signifies stabilizing net global economic growth and easing inflationary pressure.

Global Currency Index is based on 10 Major convertible currencies and it is an average of 10 currency indices.

• If MA of a Global Currency Index is less than Global Currency Index:
  Currency is Bullish.

• If MA of a currency basket is greater than Global Currency Index of basket:
  Currency basket is Bearish.

• If individual currency index is above its MA, while MA of Global Currency Index is Negative, that particular currency index is read as bullish.

• If individual currency index is above its MA, while MA of Global Currency Index is Positive, that particular currency index is read as relatively bullish.

• If individual currency index is below its MA, while MA of Global Currency Index is Positive, that particular currency index is read as bearish.

• If individual currency index is below its MA, while MA of Global Currency Index is Negative, that particular currency index is read as relatively bearish.
  
  
• Crossover of MA over Global Currency Index is change of trend of that particular basket.

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