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#1 22-10-2019 11:58:41

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2610
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The exchange rate forecast models of economists

The exchange rate forecast models of economists: Balance of payments model (first in a series of articles)


http://www.forex-central.net/img/exchange-rate-forecast.png
In this series of articles, we examine the various models used (by analysts at major investment banks) in fundamental analysis to predict the currency price changes. These models benefit traders who want to increase their knowledge of how fundamental analysis applies to the forex market. There are currently seven main models for predicting exchange rates:

  Arrow  Balance of payments theory (BOP)
  Arrow  The purchasing power parity model (PPP) (coming soon!)
  Arrow  Interest rate parity (IRP) (coming soon!)
  Arrow  The monetary exchange rate model (coming soon!)
  Arrow  The interest rate differential model (coming soon!)
  Arrow  The asset market model (coming soon!)
  Arrow  The currency substitution model (coming soon!)

The benefit of these models is that they provide a general understanding of market movements over periods of several months or years, since they are based on macroeconomic factors that affect the flows of capital exchanges between countries.


"Anything worth having is worth going for - all the way." - J.R. Ewing

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