Book description
A complete resource to trading today's currency market
Currency movements are impacted by a variety of factors, including interest rates, trade balances, inflation levels, monetary and fiscal policies, and the political climate. Traders use both fundamental data and a variety of technical tools to trade within this market. Inside the Currency Market describes both the underlying dynamics that drive this market and the strategies that can help you capture consistent profits in it.
Page by page, this reliable guide skillfully discusses the structure of the market, its roles in the global economy, the forces that drive currency values, trading strategies, and tactics. It also offers a detailed understanding of how global financial flows, derivatives, and other markets such as oil and gold impact currencies. Along the way, author and professor Brian Twomey provides information on gathering and analyzing global financial data so that traders can gain a "big-picture" perspective when attempting to identify trades.
Explains virtually every element of the market and can function as a desk reference that puts everyday events into context for traders
Fundamentally driven trades based on interest rate differentials and trade imbalances are discussed, as well as technical trades involving chart patterns, trends, and trading ranges
Each chapter contains questions and answers to help readers master the material
The currency market continues to generate interest and attract new retail traders due to the many opportunities available within it. This book will show you how to successfully operate within this arena by making the most informed trading decisions possible.
Table of contents
- Cover Page
- Title Page
- Copyright
- Dedication
- Contents
- Foreword
- Preface
- Acknowledgments
- CHAPTER 1: Foreign Exchange Reports
-
CHAPTER 2: Currency Trading Beyond the Basics
- Pips and Lots
- Bid/Ask—The Difference Is in the Spread!
- Punishing the United States with Margins
- Mrs. Wantanabe and the Margin Japan
- Margin: Europe, Switzerland, England, Australia, Hong Kong, and Canada
- Rollovers
- Rollover Rates and LIBOR
- Swap Points and Rollover
- Currency Fixing
- Factor Swap Points
- Day-Count Convention
- Triple Rollover
- Trade Strategy
- Swap Points versus Rollovers for World Wide Traders
- National Futures Association and Currencies
- Orders: Europe, Australia, New Zealand, Hong Kong, Japan, Switzerland, Canada, and England
- Brokers: Yesterday and Today
- Exchange Rates: The Impact of Keynes and Mundell-Fleming
- U.S. Current and Capital Account
- Purchasing Power Parity
- OECD-Eurostat PPP Program
- Conclusion
-
CHAPTER 3: Exchange Rates and Trade Weight Indices
- Trade-Weight Methodology
- IMF Price Indexes and History
- Sweden
- Canada
- Switzerland
- Euro
- United States
- USDX
- U.S. Major and Broad Index
- CME Dollar
- International Monetary Fund: Role and Function in Trade
- Exchange Rate Pass Through and the U.S. Dollar
- Indicative versus Reference Rates
- Factor Exchange Rates
- Trade Weight Indices and Spot Trades
- Conclusion
-
CHAPTER 4: Short-Term Interest Rates and Money Market Instruments
- Repurchase Agreements
- Repo-Market Definition
- Repo Rates and Repo Interest
- Types of Repo Transactions and Spot-Currency Trades
- U.S. Repo Market
- Bilateral Repo Trade
- Tri-Party Repo Infrastructure Reform and White Paper by New York Federal Reserve Bank
- Treasury Market Practices Group and U.S. Fails Charges
- Japanese Repo Market
- Spot Currency and Japanese Repo Rates
- New Zealand
- European Repo Council
- Implications of Survey and Spot Currency
- Switzerland
- Swiss Repo and Spot Currency
- Eurex Zurich Clearing
- Great Britain
- Canada
- Europe
- Australia
- Repo Rates and Spot Currencies
- Eurepo Charts
- Intercapital
- Dollar Repos or Swap Lines
- Chiang Mai Initiative Multilateralization
- Conclusion
-
CHAPTER 5: LIBOR
- Sonia and Euronia Indices
- SONIA, LIBOR, and British Pound Sterling/U.S. Dollar
- Seasonality and British Pound Sterling/U.S. Dollar
- BBA and LIBOR
- Seasonal Spot Currencies and LIBOR
- Maintenance Periods
- EURIBOR
- EONIA
- Track EURIBOR and EONIA Rates
- Euro, EURIBOR, and EONIA
- Australia and New Zealand
- Australian Dollar/New Zealand Dollar and Bank Bills
- Australian Securities Exchange
- Seasonality and Australian Dollar/U.S. Dollar, New Zealand Dollar/U.S. Dollar
- U.S. Dollar Pairs and LIBOR
- TIBOR and EUROYEN
- Repatriation and the Yen
- EUROYEN
- Euronext and EUROYEN
- Euro/Japanese Yen as a Risk Indicator
- Seasonality and U.S. Dollar/Japanese Yen
- Canada
- Seasonality and U.S. Dollar/Canadian Dollar
- Switzerland
- Seasonality and U.S. Dollar/Swiss Franc
- Target Rates Defined
- Conclusion
-
CHAPTER 6: Government Bonds, Yields, Yield Curves, and Currency Prices
- Yield Curves
- Currency Trading and Yield Curves
- Central Banks and Yield Curves
- Bonds and Yields
- Euro/U.S. Dollar and U.S. Treasury Bond Yields
- British Pound/U.S. Dollar and Bond Yields
- U.S. Dollar/Swiss Franc, U.S. Dollar/Canadian Dollar, U.S. Dollar/Japanese Yen and Bond Yields
- Carry Trades and Bond Yields
- U.S. Treasury Yield Curves and 2- and 10-Year Notes
- U.S. Dollar/Swiss Franc, U.S. Dollar/Japanese Yen, and U.S. Dollar/Canadian Dollar
- Canada Yield Curve and Bond Issuance
- Calculate Canada Bonds and Yields
- Yield Curve and U.S. Dollar/Canadian Dollar
- Australian Dollar/U.S. Dollar and New Zealand Dollar/U.S. Dollar
- British Pound Yield Curve
- Gilt Issuance
- British Pound/U.S. Dollar
- Japanese Yield Curves
- Japanese Yield Curve and U.S. Dollar/Japanese Yen
- U.S. Dollar/Japanese Yen, Bonds, and Yields
- Australia Yield Curve
- Factor Australia Yield Curve
- Australian Dollar/U.S. Dollar and Australia Yield Curves
- Track Australian Dollar/U.S. Dollar
- New Zealand
- Inflation-Indexed Bonds Factored as a Settlement Price per New Zealand Dollar as Principal
- New Zealand Dollar/U.S. Dollar and New Zealand Yield Curves
- Track New Zealand Dollar/U.S. Dollar
- Australian Dollar/New Zealand Dollar and Yield Curves
- Euro Yield Curve
- Track the Euro Yield Curve
- Euro/British Pound and Yield Curve
- Swiss Franc Yield Curve
- Swiss Yield Curve
- U.S. Dollar/Swiss Franc
- U.S. Yield Curve
- Dollar Pairs and Yield Curves
- Reserve Requirements and Bonds
- Cross Pairs, Bonds, and Yields
- Trade Strategies
- Yield Curves and Currency Prices
- Dollar Value of Basis Point and Modified Duration
- Conclusion
-
CHAPTER 7: Swaps and Forwards
- EONIA Swap Index
- Australia Bank Bills
- New Zealand Swap Rate
- Trade Swaps against New Zealand Dollar/U.S. Dollar
- Japan
- Trade Web, LCH Clearnet, and ICAP
- United Kingdom and British Pounds
- Canada
- Swiss Swaps
- United States
- Outright Forwards
- Calculate Forward Points, Yield Curves, and Spot Prices
- Conclusion
-
CHAPTER 8: Stock and Bond Markets
- Fair Value
- Bonds
- Reserve versus Funding Currency Pairs
- Globex and the Currency Bond/Yield Interplay
- New Zealand
- Trade Strategy
- Australia ASX
- Trade Strategy
- FTSE and British Pound
- Trade Strategy
- Euro/British Pound
- Japanese Yen
- U.S. Dollar
- British Pound/Canadian Dollar
- British Pound/Swiss Franc
- British Pound
- Japanese Nikkei 225 and TOPIX Indices
- Trade Strategy
- Deutsche Boerse DAX, STOXX, Bunds, and the Euro
- German Bunds
- Euro Trade Strategy
- Euro/Canadian Dollar
- Euro/Swiss Franc
- SIX Swiss Exchange
- SIX Swiss Exchange Trading Services
- Trade Strategy
- Toronto Stock Exchange
- Trade Strategy
- New York Stock Exchange
- Transportation Index, New Zealand Dollar/U.S. Dollar and Australian Dollar/U.S. Dollar
- U.S. Dollar/Swiss Franc and Dow Jones Utility Average
- Interest Rates
- Conclusion
- CHAPTER 9: Currency Cycles, Currency Futures, Options, and Volatility
- CHAPTER 10: Technical Analysis
- Bibliography
- About the Author
- Index
Product information
- Title: Inside the Currency Market: Mechanics, Valuation, and Strategies
- Author(s):
- Release date: November 2011
- Publisher(s): Bloomberg Press
- ISBN: 9780470952757
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