# Tag Info

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Today (1 day after the fact) the following headline appeared in the Financial Times: "September Fed rate lift-off put in doubt, Fallout from China’s currency move turns market mood". If true, this would certainly explain why the USD declined (i.e. the interest rate rise that everyone expected has been postponed). However, in my experience it is very hard to ...

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Certain regulations in a country might inhibit the values of a unit of currency from being the same within the borders of the country and outside. There might be foreign exchange or banking regulations. For example, the eurodollar rate is different from the dollar inside the US, since there are reserve requirements dictated by the Fed. Basically, same ...

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To answer this question, lets dive into some of the factors that generally determine foreign exchange rates. I've outlined the two of the most widely discussed factors below. Current account balance An economy's current account is a component of an economy's balance of payments and is a measure of the economy's financial transactions with the rest of the ...

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Yes, you can use e.g. the ECB daily official foreign exchange rate data as a reliable and consistent daily timeseries. ECB does a fixing at 14:15 CET, by some methodology they call a "daily concertation procedure". I don't easily find a description of the details (are they considering only traded prices, or bids and offers? How long of a time window ...

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It's because of onshore capital controls; units of currency cannot freely enter and leave the country and so currency held onshore (within the domain of the capital controls) is not fungible with currency held elsewhere. Hence, due to the limitations of arbitrage, those two currencies are not tightly coupled. They are related, since actual physical onshore ...

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If log returns have a symmetric distribution, prices will have a positively skewed distribution, since exponentiating induces positive skew.

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What you're trying to do is express all your positions in terms of a risk currency. Then you can track your PnL in only one currency. You need to express all this in an Excel spread sheet and include some rates, a bit like the screenshot here.

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I just checked Google Finance and the EUR/USD = 1.1190.... for arguments sake lets say it goes up by 0.10 to 1.2190 the percentage change = 1.2190/1.1190-1 = +8.94% in terms of USD/EUR the beginning quote would be 1/1.1190 = 0.8937 but would be 1/1.2190 = 0.8203 after the EUR/USD went up by 0.10. Therefore the change in terms of USD/EUR = 0.8203/0.8937-1 = ...

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Let $\{X_t \mid t \ge 0\}$ be the foreign exchange rate rate from $£$ to $\$$. Moreover, let$C(X_0, K, T)$and$P(X_0, K, T)$be the prices of the respective call and put options with strike$K$and maturity$T\$. Then \begin{align*} \frac{1}{X_0}P(X_0,\, K,\, T) = K C\left(\frac{1}{X_0},\, \frac{1}{K},\, T \right). \end{align*} Based on the given condition, ...

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I am not sure what the purpose of your volatility calculation is. So, frankly, the question does not make 100% sense to me. However, countries do not engage in trade with just one other country but with many, so from an International Trade Theory point of view looking at a single bi-lateral rate (even an important one like SLOVAKIA/EUR) is not enough. ...

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The volatility goes to 0 once the crown is pegged to the Euro. The value of an exchange rate between Currency1 and Currency2 the the ratio of the value of Currency1/Currency2. The realized volatility of a currency pair is the usually measured as some trailing average of the daily log-changes in this ratio. After the conversion was made the crown at a ...

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What you are looking at is relative PPP, which claims that exchange rate movements are explained by relative inflation movements, see wiki. However from the picture I would guess he is looking at a bottom up purchasing power parity aggregate, which as @user1483 eluded to, is a different calculation. There are several providers of this type of index, the OECD ...

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A currency quote (EURUSD 1.1, for example) put into an equation with units is 1 EUR / 1 USD = 1.1 or 1 EUR = 1.1 USD. Units or volume of a currency pair is expressed in terms of the base currency (EUR in the example), which means bids are buying and asks are selling the base currency. I glanced a few examples and it looks like you're right, but here's one ...

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For spot EURJPY with a USD risk currency, the EUR is expressed in USD using the EURUSD spot rate, say 1.1145 so your 100 USD means you can short 100 / 1.1145 = 89.7 EUR If you wanted to express the risk currency then you use the equivalent rate usually through the USD. In this case you would be buying EUR with your USD to then short EURJPY. So if you're ...

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I think this is off topic, considered this is a quant board. However, if you earn money (even just a little) on the site, I'm pretty sure it will be considered a commercial site. Yahoo! encourage you to register your site, if they approve the site, then you are good to go. Taken from "Yahoo! Developer Network Guidelines": Please see our FAQ for more ...

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