Abstract
A popular currency pair might fluctuate in price 18,000 times per day, and by 10%–20% per year. This implies not only a constant shift in the supply/demand equilibrium for that currency pair, but also continuous changes in the financial-economic relationship between those currencies. In this chapter, I will introduce a framework for understanding these fluctuations, both in the short term and the long term.
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References
International Monetary Fund (IMF), “International Capital Markets,” World Economic and Financial Surveys, September 1998, www.imf.org/external/pubs/ft/icm /icm98/pdf/file01.pdf.
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FRED, U.S. Department of Commerce: Bureau of Economic Analysis, Census Bureau, “Trade Balance: Goods and Services, Balance of Payments Basis,” updated April 12, 2012, http://research.stlouisfed.org/fred2/series/BOPGSTB?cid=125.
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© 2012 Adam Kritzer
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Kritzer, A. (2012). What Makes Currencies Move?. In: Forex for Beginners. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4302-4051-8_3
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DOI: https://doi.org/10.1007/978-1-4302-4051-8_3
Publisher Name: Apress, Berkeley, CA
Print ISBN: 978-1-4302-4050-1
Online ISBN: 978-1-4302-4051-8
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