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Inside the Currency Market: Mechanics, Valuation, and Strategies
book

Inside the Currency Market: Mechanics, Valuation, and Strategies

by Brian Twomey
November 2011
Beginner
335 pages
9h 33m
English
Bloomberg Press
Content preview from Inside the Currency Market: Mechanics, Valuation, and Strategies

Conclusion

The bond/yield interplay is useful and a vital tool to determine not only the cost of money, but how money is priced in the markets within each side of a currency pair. Two nations’ yield curves constantly ebb and flow as well as a single nation's curve along the various maturities. The vital determination to measure yield curves is in the slopes, but slopes must be measured in basis-point terms in order to understand the insight into direction of a curve. Currency pairs move based on this scenario due to the cost of each currency priced in the markets. It is a market-driven rate rather than a controlled rate. How each side of a currency pair is priced in terms of an interest rate is found in the yield curve.

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Publisher Resources

ISBN: 9781118149331Purchase book