A chart of the Sterling Trade-Weighted Index Incomplete
מעודכן
This is a chart of the GBP (sterling) trade-weighted index (black), along with the US dollar index (green), and the GBPUSD pair.
This GBP trade-weighted index is a Basket Composition of UK's currency that puts emphasis on the relative importance of the trading partners of the United Kingdom by percentage. This makes more sense, as a country will be more effected by a trading partner with a greater trade (import and export) weight (ex: 60% trade wight) than a trading partner with a trading weight of 1%.
Uses:
- Get a TRUE view of what a currency is doing, and why GBPUSD goes up or down.
- Know better the direction of the GBP currency
- Gauge market sentiment of the UK better
- See risk-aversion and risk-on modes better
- Get a better macroeconomic view of a particular currency
- Assess strength/weakness correlations of one currency versus another, such as GBPUSD.
- If GBP TWI index (black) is in an up trend, and DXY (green) is in a down trend, then you can know for sure that the best thing to do is to buy GBPUSD. The strength of each shall heighten the effect.
- See when a currency pair is undervalued in the short term.
Notes:
These are only the 4 most important currencies by percentage that are in the chart of this GBP trade-weighted index. Other important trading partners are China, Norway and Canada. I did not include them in here because I did not find their recent trading partner percentage; also, China is not completely a floating currency.
If you are interested in TWIs of currencies, central bank websites provide us with this information for free.
This GBP trade-weighted index is a Basket Composition of UK's currency that puts emphasis on the relative importance of the trading partners of the United Kingdom by percentage. This makes more sense, as a country will be more effected by a trading partner with a greater trade (import and export) weight (ex: 60% trade wight) than a trading partner with a trading weight of 1%.
Uses:
- Get a TRUE view of what a currency is doing, and why GBPUSD goes up or down.
- Know better the direction of the GBP currency
- Gauge market sentiment of the UK better
- See risk-aversion and risk-on modes better
- Get a better macroeconomic view of a particular currency
- Assess strength/weakness correlations of one currency versus another, such as GBPUSD.
- If GBP TWI index (black) is in an up trend, and DXY (green) is in a down trend, then you can know for sure that the best thing to do is to buy GBPUSD. The strength of each shall heighten the effect.
- See when a currency pair is undervalued in the short term.
Notes:
These are only the 4 most important currencies by percentage that are in the chart of this GBP trade-weighted index. Other important trading partners are China, Norway and Canada. I did not include them in here because I did not find their recent trading partner percentage; also, China is not completely a floating currency.
If you are interested in TWIs of currencies, central bank websites provide us with this information for free.
הערה
IvanLabrie recently posted an average-weighted index of the sterling.הערה
IvanLabrie recently made an average-weighted index, which can be found below. Although central banks have trade-weighted indicies, only places like TradingView gives us the ability to plot charts of them (if we can make them).An example of trade-weighted and average-weighted indicies can be found in equities:
DJIA = an average-weighted index
S&P500 = a trade-weighted index
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.