Forex Trading News
Spot & Forward Currency RelationshipFinancial markets are tied together by a vast web of currencies, each with its own value relative to the others. These values are not static and fluctuate based on various factors including economic performance, geopolitical events, and policy decisions. One of the primary mechanisms by which these currency values are determined is through the relationship […]
Asian Financial Crisis (1990s) – Causes & Lessons for Today’s PortfoliosIn the late 1990s, the Asian Financial Crisis swept through several East Asian nations, causing an economic downturn that was felt globally. The crisis began in Thailand in 1997 with the collapse of the Thai baht, following the decision by the government to unpeg the currency from the US dollar. It then rapidly spread to […]
The History of Money: From Barter to Modern Payments SystemsThe history of money is a fascinating subject that spans thousands of years, starting from the simple barter system of ancient Mesopotamia to the payment systems of today. In this article, we look at the evolution of money, focusing on its various forms and systems, the theories behind its development, and its impact on societies […]
Anti-Growth Assets (List of Stores of Value)There are several assets that can be considered stores of value that hold their value over time and are less dependent on infusions of liquidity and good economic conditions. Including some level of “anti-growth” assets in a portfolio can help to mitigate risk and provide a store of value for a more balanced portfolio or […]
Examples of Asset-Liability MismatchesAsset-liability mismatches (ALMs) occur when the financial characteristics of an entity’s assets do not align with those of its liabilities. These mismatches can lead to substantial financial risks, including liquidity crises, currency risks, and interest rate risks. It can pose a problem for traders as well. Often, market participants and businesses are not aware of […]
Why Doesn’t the World Have One Currency?The notion of adopting a single, global currency has been a subject of numerous debates and discussions. It’s an idea that, on the surface, appears to offer many benefits, such as eliminating exchange rate risks and facilitating global trade. However, the reality of implementing such a system (beyond a limited economic sphere) is impractical. This […]
Flows and Positioning – How They Impact Portfolio ConstructionFlows and positioning play a vital role in shaping the performance of various macro asset classes within the context of portfolio construction. Understanding these factors can help investors make informed decisions about their trades and investments and optimize their portfolios for maximum returns. In this article, we’ll discuss the implications of flows and positioning on […]
What Gives a Currency Value?Currency values play a vital role in international finance, trade, and the global economy. Naturally, the fluctuating nature of currency values is what allows currency traders to generate profits. To make informed decisions and succeed in foreign exchange trading, it’s important to understand the factors that give a currency its value and the mechanics behind […]
Petrodollar SystemThe petrodollar system has been a significant factor in shaping the global economy for nearly half a century. This system, which revolves around the trade of oil for US dollars, has sustained the value and reserve currency status of the US dollar and influenced global politics and economics since its inception in the 1970s. This […]
Bretton Woods System – Formation, Breakdown & Future ImplicationsThe Bretton Woods system, established in 1944, marked a significant milestone in the history of the global monetary system. It laid the foundation for the current system of international finance and trade, shaping economic policies for decades. This article will look at the formation and breakdown of the Bretton Woods system, its implications, and the […]
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