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Non-Tech : The Woodshed -- Ignore unavailable to you. Want to Upgrade?

To: nspolar who wrote (20005)	1/17/2005 2:20:56 PM
From: Louis V. Lambrecht	Respond to of 60908

USD and Euro indexes; answers to an old post. (Am f*cking up my puters) First the USD index aka G-10 is deprecated according to the FED, but it is traded <vbg>. The FED (an I <g>) prefers the "major trading partners" as a base. Got some babble here lvlamb.itgo.com (page has to be updated, some time to include the comparative Euro indexes, base is here ecb.int ) Last year, the ECB changed the "Effective Exchange Rate" base from 12 currencies to 23, in order, mainly, to include the currencies of the countries which joined (or are close to join) the Union. The yuan was also added as China is a "major trading partner". Now, those indexes (USD or EUR) are based 100 on a typical reference period. And trend to stay at 100, how wonderfull ROFL (TIS is the competiive devaluation <g> lvlamb.itgo.com ) More extraordinay <vbg> USD G-10 index vs. USD "major trading partners" on one side, and the Euro Effective Exchange rate base 12 vs. base 23 on the other side trend to show the same values. So, the Euro is not an index, or you should also take the USD as an index of the primary dealers of the FED. The Euro is a currency accepted amongst different countries (as the USD is accepted amongst US states), accusing an European country to weaken the Euro is as silly as saying that California weakens the USD. The currencies wheights in the Euro have no meaning. In January 199, the "irrevocable exchange rate" has been set Wheights have as few meaning as wheights of an US state or Canadian province in the common currency (repeating myself; the Canadian Dollar or the US Dollar also are a "common currency", as the Aussie or the Rand, abd for that matter, old Deutsch Mark also was a common currency for the German Laender). Some countries, states, provinces, ... are economically weaker or stronger and contribute differently to the strenght of the common currency. In this sense, yes, there is a "weight" of each country (state or province...). uuurgh! And this on a Monday, day after.