We present theory and evidence that challenges the view that forward premia contain little information regarding subsequent spot rate movements. Using weekly dollar-mark and dollar sterling data, we find that spot and forward exchange rates together are well represented by a vector error...

Most technical analysis studies are concerned with the profitability of technical trading rules and almost all of them focus exclusively on trend-following patterns. In this paper we examine a different kind of technical indicator which suggests a structural relationship between High, Low, and...