Foreign Exchange

Currency prices react to a nonstop flow of news about global politics and economies, and for anyone trading foreign exchange, separating what matters from what does not is a constant struggle. A practitioner who has traded FX at Goldman Sachs, PIMCO and Barclays Investment Bank wrote this book to pair that hands-on experience with textbook-level modern financial macroeconomic theory. Its focus is the macroeconomics of exchange rate determination.

Readers would normally have to piece this material together from textbooks, academic papers, industry research notes, conversations with other traders, and the economic theories that journalists cite. The book gathers these strands in one place and turns them into concrete views on currency movements. Those views rest on macroeconomic ideas such as risk premiums, interest rates and inflation, along with other topics.

A central message is that analysis should stay consistent over time instead of hopping from one day's economic story to the next. The book is written for buy-side and sell-side professionals, finance and economics graduate students, academics, and others interested in FX markets. It shows readers how to build this kind of thinking and how to apply it to improve their trading and their understanding of the market.