FX as an asset class? - what matters are factors

I visited the FXWeek North American conference across the street from my office. It is interesting that the issue of FX as an asset class is...

Driving FX markets - common risk factors?

What drives the FX markets? This is a critical but complex issue for any investor who needs to look at this asset class. The usually approac...

Commodity currencies respond to commodity prices

There is a long tradition of believing that exchange rates cannot be forecast with economic fundamentals. The power of fundamental models to...

Price and economic momentum result in better currency returns

There is a long history of showing that tracking trends or sorting by momentum in currencies will lead to good return performance.  Trends a...

New Zealand dollar is a canary (kiwi) in a coal mine

New Zealand dollar action is a canary (kiwi) in a coal mine. The central bank lowered rates by 25 bps to 2.25 percent which led to an immedi...

China inclusion in SDR's - this is important for all investors

Most investors have likely past over the stories on the IMF's inclusion of the Chinese Renminbi in the basket for SDR's. The change ...

QE and the dollar - show me the supply changes and I will show you direction

December will set the tone for the direction of the dollar in 2016. The ECB will meet this week and there is a high likelihood that it will ...

"Quantitative tightening" - the selling of foreign exchange reserves impacts global credit

One of the key themes in 2015 has been the decline in the foreign reserve stockpile by EM central banks. EM central banks have been selling ...