The 1990s saw an unprecedented eruption of currency crises wreaking varying degrees of instability and chaos throughout the world's foreign exchange markets. From the withdrawal of sterling from the Exchange Rate Mechanism in 1992, through to the crash of the Asian currency markets in 1997, and on to the economic upheavals in Russia and Brazil in 1998, the last decade has produced an ever more volatile financial environment. The launch of the euro, and its subsequent implications, has added yet another dimension to what is already a turbulent and enigmatic global marketplace.
Never before has a thorough understanding of what shapes and shakes the currency markets been of such paramount importance.
What Drives Currency Markets takes the reader on a complete tour of the instigators of change within the foreign exchange market. Beginning by placing the FX market in the centre of the global financial system, it moves on to explain where volatility originates, and what the major factors of change are, including economic developments and short-term considerations. The book discusses what makes a great currency and whether currency collapses can ever be predicted. The influence of the euro is emphasized throughout the whole text and the author concludes by asking whether the euro will succeed or fail as a currency.
What Drives Currency Markets is essential reading for dealers, analysts, newcomers to the financial markets, and finance professionals across the board who need to maintain their edge at the forefront of developments in international financial markets.
About the FT Market Fundementals Series
"To say that the financial markets were subject to information overload would be a major understatement. Indeed the news and data streaming endlessly from the computer terminals carrying information appears limitless" - Brian Kettell
This new series puts readers in the ideal position to assess new market moves quickly and efficiently, interpret market indicators correctly, anticipate other players' moves while there's still time to profit, and avoid being caught out by sharp price moves in rapidly changing markets.
FT Market Fundamentals: sort the vital from the trivial and stay ahead of the game
Table of contents
1. The role of information in financial markets.
2. How do you value financial assets?
3. The business cycle and financial markets.
4. The Federal Reserve at work—The implementation of monetary policy Introduction.
5. How does economic activity affect financial markets?
6. A survey of market-sensitive economic indicators.
7. Consumer expenditure.
8. Investment spending, government spending and foreign trade.
9. The effect of consumer confidence and consumer sentiment on financial markets.
Addresses and web sites.
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