We study the relationship between foreign exchange trading activity and volatility on theUSD/EUR foreign exchange market on the basis of a unique data set around the events of09/11/2001. We find that volatility and bid-ask spreads are by far larger at that time, but theshock is not persistent....

Momentum strategies deliver positive profits in a variety of market and asset classes with one glaring exception - Japan. The failure of momentum in Japan has led some to call into question momentum's viability, suggesting that perhaps momentum's success elsewhere may be the result of data...

The commodity market has been becoming one of the main popular segments of the financial markets among individual and institutional investors in recent years, due to downward trend on the stock exchanges. Likely to the equity market, the problem of anomalies in the commodities market is becoming...

This article focuses on some of the operational aspects of winding down a bank’s trading book portfolio and discusses the hidden exit costs that can sometimes exist. The article provides a deep dive on valuation principles and exit strategies currently considered by industry practitioners when...

The study investigates the influence of financial development on foreign trade in transi- tional economies using panel data (1994-2014). Although empirical studies on the im- pact of financial development on foreign trade are available, none of them that the au- thors are aware of attempted to...

The study investigates the influence of financial development on foreign trade in transi- tional economies using panel data (1994-2014). Although empirical studies on the im- pact of financial development on foreign trade are available, none of them that the au- thors are aware of attempted to...

In this paper, we explored the J-curve effect based on Nigerian data by adopting the vector error correction methodology. The results of the study indicated a cyclical feedback between the trade balance and the real exchange rate depreciation of the Naira. However, the analysis finds no...

While the trade channel indicates that an exchange rate depreciation will stimulate domestic economic activity, the financial channel can have the opposite effect. When banks and non-banks have foreign currency liabilities, an exchange rate depreciation has valuation effects that can lead to a...

This paper establishes a causal link between the dollar exchange rate and international trade flows, employing a new instrument for the U.S. Dollar that is based on domestic U.S. housing activity (Ma and Zhang (2019)). In line with the dominant currency paradigm (Gopinath et al. (2020)), import...

Using both the onset of the US-China trade war in 2018 and the most recent Russia-Ukraine war and associated trade tensions, we show a counterintuitive pattern in global trade. Namely, while the average firm trading with these nations significantly decreases their trade with these jurisdictions...