Category: Foreign Exchange

Capital flows and FX

When data is irritating to get hold of, guess what, folks don’t bother looking at it (or at the very least fewer people take a look at it). When it comes to FX, one dataset which seems to suffer from this is capital flow data. First what are capital flows? To quote that arbiter of all…

What drives FX?

The title of this post seems simple enough. However to answer the question of what drives FX is somewhat more complex. I remember one of my colleagues at Lehman Brothers, used to describe FX as an amalgamation of other markets. When a portfolio manager buys stocks in a foreign country, this results in an FX…

A cynic & valuation in FX

I remember (many) years ago, being asked at a graduate job interview at Lehman Brothers, what is the price of an asset? I somewhat stumbled around for a few minutes pontificating searching for a few coherent words which could be jumbled up into the sentence. I have no precise recollection of what I replied. I do however remember…