Forex Technical Analysis PCI : 14 November 2014
Today we consider the currency anti-dollar index &VSUSD_Index composed on the basis of the Personal Composite Instrument – PCI technology. The currency index is designed to show the USD fluctuations against other segment of the Forex market. As a systematic FX market indicator we will use a portfolio of the most liquid currencies traded against USD: [EUR(12.7%)+JPY(14.5%)+GBP(17.5%)+CHF(19.1%)+AUD(18.1%)+CAD(18.1%)]/USD. The price of each currency is expressed in USD. The weights are defined according to the currency liquidity relative to the volume of international bank circulation. Get more details and the online index chart by clicking on the anti-dollar index page &VSUSD_Index.
Note that &VSUSD_Index reaction on the US fundamental economic events is the most obvious and sustainable: the index forms a stable trend channel, meanwhile it is less susceptible to the fundamental events of other currencies. Let us remind you that today Core Retail Sales is to be released in the US. The indicator is released by the US Census Bureau every month and indicates the relative change in the retail sales volume of all the goods (except for cars), which amounts to 20% of the total volume. CRS is the monthly measurement indicator of all goods sold by retailers based on the retail stores sampling of different types. The index defines the consumer confidence and demand, and therefore, it can affect significantly investor preferences. Currently, &VSUSD_Index is waiting for new fundamental signals, and it is still in a state of uncertainty.