Foreign Exchange: Practical Asset Pricing and Macroeconomic Theory

This book combines the insights of a market practitioner with textbook-level modern financial macroeconomic theory to help participants in foreign exchange markets overcome the challenges of sifting through overwhelming information. It covers macroeconomics relating to exchange rate determination and promotes time-consistent thought to improve trading and understanding of the FX markets.

Format: Hardback
Length: 241 pages
Publication date: 23 February 2022
Publisher: Springer Nature Switzerland AG

One of the significant challenges that numerous participants in the foreign exchange (FX) markets encounter is navigating through the often overwhelming abundance of information available. Media outlets continuously provide updates on international politics, economics, and various other factors that influence FX prices around the clock. Determining what is genuinely significant and what is not can be quite challenging. This book aims to assist its readers in overcoming these obstacles by merging the insights gained from a market practitioner with extensive experience in trading FX at renowned institutions such as Goldman Sachs, PIMCO, and Barclays Investment Bank, with textbook-level modern financial macroeconomic theory.

The book delves into macroeconomics, specifically focusing on the determination of exchange rates. While you could gather this information from a diverse range of sources, including textbooks, academic literature, industry research notes, conversations with other market practitioners, and theories mentioned in media reports, this book consolidates all of these sources to translate the information into concrete FX views that are firmly grounded in the macroeconomic theory of risk premiums, interest rates, and inflation, among other topics. The book promotes a consistent and disciplined approach to thinking, discouraging the daily temptation to jump from one day's economic narrative to the next. This book holds particular interest for buy- and sell-side industry practitioners, finance and economics graduate students, academics, and individuals with a keen interest in FX markets. It equips its readers with the knowledge and skills necessary to excel in trading and enhance their understanding of the FX markets.

Weight: 538g
Dimension: 160 x 241 x 22 (mm)
ISBN-13: 9783030935542
Edition number: 1st ed. 2022