Forex Trading News

The Marshall-Lerner condition is a fundamental concept in international economics. It relates to the price elasticity of imports and exports. The condition states that a currency devaluation will only improve a country’s trade balance if the sum of the price elasticities of imports and exports is greater than one.   Key Takeaways – Marshall-Lerner Condition […]

China has experienced multiple cycles of its empire rising and declining – in what are known today as dynasties. By examining the political, social, and economic/financial underpinnings of these cycles, we can extract lessons for today’s investment landscape and global order. Chinese policymakers are also well-versed in their own history (and that of other ancient […]

Though less understood than traditional directional trading strategies, multi-asset volatility arbitrage (MAVA) involves harnessing profiting from volatility in the markets. At its core, multi-asset volatility arbitrage is a strategy that relies on the volatility differentials of various asset classes. Below we look into the details of multi-asset volatility arbitrage, its benefits, risks, and how traders […]

We look at the history of the British Pound, its rise as the world’s top reserve currency, the factors that contributed to its decline, and the lessons that traders and investors can draw from its history.   Key Takeaways – The Rise and Fall of the British Pound The history of the British Pound underscores […]

From 1434 to 2002, the Dutch Guilder embodied the economic ebb and flow of the Netherlands. Emerging as a regional currency, the Guilder steadily ascended to international prominence during the Dutch Golden Age, becoming a symbol of the nation’s economic strength. Yet, like all things, it was not immune to the inevitable cycles of rise […]

Currency pegging is one technique that nations use to stabilize their economies by tying their currency’s value to that of a stronger, more stable currency, often the US dollar or euro. However, these pegs are not invincible. They can, and do, break under certain circumstances, especially when the exchange rate is out of whack relative […]

Current and Capital Account Convertibility are key concepts in international economics and foreign exchange markets, particularly in the context of balance of payments. Current account convertibility refers to the freedom of converting local financial assets into foreign financial assets and vice versa at market-determined rates of exchange for income-related transactions (e.g., exports and imports, remittances). […]

A reserve currency is one that is held in significant quantities by governments and institutions as part of their foreign exchange reserves. These currencies are often used for international transactions and tend to be currencies of the world’s most powerful and stable economies. The US dollar, the Euro, and the Japanese yen are examples of […]

It is a common misconception that a currency is a permanent thing and cash is a safe asset. Every currency is susceptible to devaluation or complete dissolution. When this occurs, cash and bonds (promises to receive currency) become worthless or significantly devalued. This phenomenon is largely tied to debt burdens and how economies manage these […]

Inflationary depressions are an economic phenomenon that can have devastating consequences for an economy. They are born out of the interplay between the amount of currency and debt in the economic system. Below we look into the relationship between currency, debt, and central banks’ role, the balancing act they must perform to stave off economic […]