Chong, Terence Tai-Leung; Shik, Thomas Chun-Sing - In: Applied Financial Economics Letters 3 (2007) 2, pp. 71-76
This article studies the profitability of the Moving Average (MA) trading rule in the cross-rate market. We show that the MA rules are profitable if the two currencies belong to different economic zones. In addition, our study demonstrates that the interest rate differential has little effect on...