Currency Trading Course

Bank of Israel buys $300 million - Globes

Bank of Israel buys $300 million Globes A trader from one of the foreign currency dealing rooms told "Globes" today, "Many foreigners have been selling dollars and buying shekels in recent days. … and more »

Collins Stewart launches new brokerage in London - FT Adviser

Collins Stewart launches new brokerage in London FT Adviser … comprehensive capabilities - including multi-currency dealing, electronic trading, warehousing - cross-border transactions, spousal transfers and access … and more »

Peso up, stocks down on first day of trading - Manila Times

Peso up, stocks down on first day of trading Manila Times Strong remittance inflows continued to prop up the peso against the US dollar during the first trading day … Peso seen to stay strong, but volatile ahead of May pollsBusiness Mirror all 3 news articles »

The interaction between technical currency trading and exchange rate fluctuations [An article from: Finance Research Letters]

The interaction between technical currency trading and exchange rate fluctuations [An article from: Finance Research Letters]
This digital document is a journal article from Finance Research Letters, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
This paper examines the mutually reinforcing interactions between exchange rate dynamics and technical trading strategies. I first show that technical trading systems have been quite profitable during the floating rate period. This profitability stems from the successful exploitation of exchange-rate trends and not from taking winning positions relatively frequently. I then show that technical models exert an excess demand pressure on currency markets. When these models produce trading signals, almost all signals are on the same side of the market, either buying or selling. When technical models maintain open positions they are either long or short. Initial exchange rate movements triggered by news or by stop-loss orders are strengthened by technical trading and are often transformed into a trend. This ”multiplier effect” is reflected by the close relationship between technical trading signals and order flows. Hence, order flows are not only driven by (fundamental) news but also by technical trading, which reinforces exchange rate trends to which it responds.