Inside the Currency Market

A complete resource to trading today's currency market Currency movements are impacted by a variety of factors, including interest rates, trade balances, inflation levels, monetary and fiscal policies, and the political climate. Traders use both fundamental data and a variety of technical tools to trade within this market. Inside the Currency Market describes both the underlying dynamics that drive this market and the strategies that can help you capture consistent profits in it. Page by page, this reliable guide skillfully discusses the structure of the market, its roles in the global economy, the forces that drive currency values, trading strategies, and tactics. It also offers a detailed understanding of how global financial flows, derivatives, and other markets such as oil and gold impact currencies. Along the way, author and professor Brian Twomey provides information on gathering and analyzing global financial data so that traders can gain a "e;big-picture"e; perspective when attempting to identify trades. Explains virtually every element of the market and can function as a desk reference that puts everyday events into context for traders Fundamentally driven trades based on interest rate differentials and trade imbalances are discussed, as well as technical trades involving chart patterns, trends, and trading ranges Each chapter contains questions and answers to help readers master the material The currency market continues to generate interest and attract new retail traders due to the many opportunities available within it. This book will show you how to successfully operate within this arena by making the most informed trading decisions possible.

A complete resource to trading today's currency marketCurrency movements are impacted by a variety of factorsincluding interest rates, trade balances, inflation levelsmonetary and fiscal policies, and the political climate. Tradersuse both fundamental data and a variety of technical tools to tradewithin this market. Inside the Currency Market describesboth the underlying dynamics that drive this market and thestrategies that can help you capture consistent profits in it.Page by page, this reliable guide skillfully discusses thestructure of the market, its roles in the global economy, theforces that drive currency values, trading strategies, and tactics.It also offers a detailed understanding of how global financialflows, derivatives, and other markets such as oil and gold impactcurrencies. Along the way, author and professor Brian Twomeyprovides information on gathering and analyzing global financialdata so that traders can gain a "big-picture" perspective whenattempting to identify trades.* Explains virtually every element of the market and can functionas a desk reference that puts everyday events into context fortraders* Fundamentally driven trades based on interest ratedifferentials and trade imbalances are discussed, as well astechnical trades involving chart patterns, trends, and tradingranges* Each chapter contains questions and answers to help readersmaster the materialThe currency market continues to generate interest and attractnew retail traders due to the many opportunities available withinit. This book will show you how to successfully operate within thisarena by making the most informed trading decisions possible.

Foreword ixPreface xiAcknowledgments xvCHAPTER 1 Foreign Exchange Reports 1CHAPTER 2 Currency Trading Beyond the Basics 15CHAPTER 3 Exchange Rates and Trade Weight Indices 39CHAPTER 4 Short-Term Interest Rates and Money Market Instruments 73CHAPTER 5 LIBOR 103CHAPTER 6 Government Bonds, Yields, Yield Curves, and Currency Prices 147CHAPTER 7 Swaps and Forwards 197CHAPTER 8 Stock and Bond Markets 221CHAPTER 9 Currency Cycles, Currency Futures, Options, and Volatility 269CHAPTER 10 Technical Analysis 283Bibliography 299About the Author 303Index 305