## FX Interventions: Rationale, Effectiveness, and Recent Developments

Download PDF Introduction The current macroeconomic landscape is shaped by high inflation, increasing interest rates, and growing risk aversion. The diverging realities nations are facing due to the Russia-Ukraine war, the ensuing energy crisis, the COVID-19 pandemic, the looming global recession, and more, are putting policymakers’ decisions in the limelight. Read more…

## Our view on EURUSD

Download PDF A persisting trend DISCLAIMER: The EURUSD pair is an exception to general FX notation. We comply with the quoting convention adopted in the industry: when the Dollar strengthens against the Euro, EURUSD moves lower, and vice versa. For charting purposes, however, we use the USDEUR time series. The Read more…

## Uncovering the reasons behind the Yen’s (recent) weakness

Download PDF Introduction Recent data on the USD/JPY pair showed a significant strengthening of the US dollar against the Japanese currency, reaching an all-time high since 2016, marking almost a 5% decline YTD. This piece of news, however, is only the most recent episode of a significant weakening streak in Read more…

## Market Recap 28/11/2021

Download PDF USA The US main index dropped sharply on Friday, after the Thanksgiving session, following a new Covid variant thread found in South Africa. “This variant has a large number of mutations, some of which are concerning,” the WHO said on Friday. The new variant is still under examination, Read more…

## Dollar repatriation? Different story told by cross currency swap

Intro Cross-currency basis swaps, also known as basis swaps, are contracts in which two counterparties agree to exchange interest payments according to two floating rates as well as notional principals denoted in two different currencies. Theoretically, covered interest rate parity should hold in absence of arbitrage opportunities. Here S and Read more…

## Brazil’s “Real” Struggle: what’s next?

In this article we are going to analyse Brazil’s next General elections, scheduled to be held on October 7 (i.e. today). The first section will present some basic information about Brazil and a brief background on the current political situation. The second part will present key factors on the Brazilian Read more…

## Volatility Play on the Hidden Gold-Yuan Peg

Reserve Currencies A reserve currency is defined as a currency held by government for international payment purposes. The most important usages are: Repay back international debt (generally issued in reserve currencies) Defend the domestic currency against depreciation Improve the government credit rating Reserve currencies are many. The IMF chooses the Read more…

## A Primer on FX Carry Trading

Carry Trades and the Interest Parity Condition The uncovered interest rate parity (UIP) condition states that, under risk neutrality, the gain from borrowing a low interest rate currency and investing in a higher interest rate one will, in equilibrium, be matched by an equally large expected loss by a depreciation Read more…