“There is no sphere of human thought in which it is easier to show superficial cleverness and the appearance of superior wisdom than in discussing questions of currency and exchange.”
Winston Churchill, Speech to the House of Commons, 29 September 1949
The FX market is a mystery to most people, including some of its participants. Pundits on other financial markets and legislators in most countries don’t fully understand it, either. Everyone notes how big the FX market is – bigger than all other global markets combined at $4 trillion per day – but no one ever asks “What is the purpose of all this trading volume?” There are other unanswered questions about FX too.
We also want to know whether FX secretly drives all other markets, ...