Understanding foreign exchange risk is a necessary skill for anyone involved in international finance or trade. It involves recognizing how currency values can change due to economic indicators, ...
James Chen, CMT is an expert trader, investment adviser, and global market strategist. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician ...
Today’s economic reality includes a world of free-floating fiat currencies, where the value of a nation’s currency is determined by supply and demand in the global foreign exchange or forex market.
Many countries go to great lengths to manage their exchange rates. Probably the most prominent recent example is the European Monetary Union, where all the members abandoned their national currencies ...
Currency arbitrage refers to the practice of taking advantage of exchange rate differences in various foreign exchange market venues to make a net profit. Currency arbitrage plays a significant role ...
Investors would not be to blame for detesting the international sleeve of their portfolios over the past decade. Coming out of the global financial crisis in 2009, the U.S. equity market has easily ...
We recently published a leader and briefing in which we argued that Taiwan’s weak-currency policy is punishing consumers and storing up financial risk. The central bank, known as the CBC, has written ...
Recent studies have examined the relationship between economic policy uncertainty and exchange rate. We contribute to this literature by considering the effect of minor positive and major positive ...
As an export-oriented economy, Taiwan’s export income can be easily influenced by internal and international economic factors, including the industrial production index (IPI) and the exchange rate.