I'm not sure what you are asking. All that this formula shows is EAFE in local currency - EAFE in U.S. dollars = the effect of the dollar for that day. There is nothing to "work".
While I don't want to speak for Gilligan I'll hazard a guess at what he is doing. He is watching the overseas markets. At 11:30 all of Asia is closed. He knows the Nikkei 300 makes up about a fourth of the EAFE. He probably knows what Australia and some of the other Pacific rim countries make up too. He also knows that Europe is almost closed and that the FTSE makes up about another fourth of the EAFE and he probably knows what some of the European percentages are too. From this he is able to come up with an estimate of the EAFE in local currency. Now, technically at this point he would need to compare each local currency to the dollar AT THE TIME each of those markets closed. But that seems way to labor intensive. So instead he probably just looks at the dollar index at 11:30 and applies that to the local currency and generates his estimate. Fortunately for us, the make up of the dollar index is pretty close to the make up of currencies in our I fund. So at 3:00pm when MSCI shows us the real figures, we can subtract the EAFE in U.S. dollars from the EAFE in local currency and the result should be awfully close to the dollar index figure that Gilligan uses at 11:30. Any differences would be attributed to slight difference in weighting and more likely to the timing of each markets close.
Gilligan was I close?
Sponsor, did I make any sense to you?
