Interpretation of “ForexMetrics Currency Index”
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“ForexMetrics Currency Index” is a barometer to measure overall relative global economic growth and inflation based on value of major global convertible currencies.
FMCI does not only represent a single global currency, but also determines global economic cycle.
Refer to following table for details :
| ForexMetrics Currency Index Table | |||||
| From | To | ||||
| Index Range | 0.0001 | 0.9949 | |||
| Economic Cycle | Depression | ||||
| Growth Rate | Negative | -1.00% | -5.00% | ||
| Inflation Rate | High | 10.00% | Above | ||
| Net Growth | Negative | ||||
| Interest Rates | Very Low | 0% | 1.00% | ||
| Remedy | Interest Rate at lowest level & Boost in Government Spending | ||||
| Index Range | 0.9950 | 1.1310 | |||
| Economic Cycle | Recession | ||||
| Growth Rate | Negative | 0.00% | -1.00% | ||
| Inflation Rate | Medium | 3.00% | 10.00% | ||
| Net Growth | Negative | ||||
| Interest Rates | Low | 0% | 1.00% | ||
| Remedy | Expect Interest Rate Low and Increased Government Spending | ||||
| Index Range | 1.1311 | 1.1949 | |||
| Economic Cycle | Slow Growth | ||||
| Growth Rate | Positive | 0.00% | 2.00% | ||
| Inflation Rate | Medium | 3.00% | 5.00% | ||
| Net Growth | Negative | ||||
| Interest Rates | Low | 1.00% | 5.00% | ||
| Remedy | Expect Increase in Interest Rates | ||||
| Index Range | 1.1950 | 1.2449 | |||
| Economic Cycle | Stagflation | ||||
| Growth Rate | Positive | 2.00% | 4.00% | ||
| Inflation Rate | Medium | 3.00% | 5.00% | ||
| Net Growth | Balance | ||||
| Interest Rates | Low | 3.00% | 8.00% | ||
| Remedy | Interest Rate Increase or Cut depending on Economic Data | ||||
| Index Range | 1.2450 | 1.3150 | |||
| Economic Cycle | High Growth | ||||
| Growth Rate | Positive | 3.00% | 7.00% | ||
| Inflation Rate | High | 4.00% | 7.00% | ||
| Net Growth | Balance | ||||
| Interest Rates | Medium | 3.00% | 8.00% | ||
| Remedy | Expect Interest Rate Cut to Control Inflation | ||||
| Index Range | 1.3150 | above | |||
| Economic Cycle | Inflation | ||||
| Growth Rate | Positive | 4.00% | 10.00% | ||
| Inflation Rate | Highest | 5.00% | 15.00% | ||
| Net Growth | Positive | ||||
| Interest Rates | High | 5.00% | 9.00% | ||
| Remedy | Expect Major Interest Rate Cut to Control Inflation & Economy | ||||
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