Is there a change?

A

aamg

Hi
There's a formula for calculating USDX:

USDX=50.14348112*eurusd^(-0.576)*usdjpy^(0.136)*gbpusd^(-0.119)*usdcad^(0.091)*usdsek^(0.042)*usdchf^(0.036)

Is it stable forever?
We see that EURUSD and GBPUSD have negative powers in this formula. What's the reason? I guess the reason is that EUR and GBP are more powerful currencies than USD. So for example right now that cad is more powerful than USD, can it be a factor to change the formula?
Thanks
 
Quote from aamg:
Is it stable forever?
More...
No. AFAIK it is trade weighted and is recalibrated
periodically.


Quote from aamg:

We see that EURUSD and GBPUSD have negative powers in this formula. What's the reason?
More...
The coefficients are negative because the USD is the
"terms," or right-hand side, of the pair. If USD were
the "base," or left-hand side, the coefficients would
be positive.
 
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