Based on the progression, Euro Currency Index can show the strength or weakness of the Euro . A rising index indicates an appreciation of the Euro against the currencies in the currency basket, a falling index in contrast, a devaluation. Relationships to commodity indices are recognizable. A rising Euro Currency Index means a tendency of falling commodity prices. This is especially true for agricultural and the price of oil . Even the prices of precious metals ( gold and silver ) are correlated with the index.
Arithmetically weighted Euro Currency Index is comparable to the trade-weighted Euro Effective exchange rate index of the European (ECB). The index of ECB measures much more accurately the value of the Euro , compared to the Euro Currency Index , since the competitiveness of European goods in comparison to other countries and trading partners is included in it.