We assess the properties of currency value strategies based on real exchange rates in a cross-sectional portfolio … setting. We find that real exchange rates predict currency excess returns, but in a way that is inconsistent with the notion … of currency value because a high valuation level forecasts a relative appreciation of the foreign currency going forward …

We assess the properties of currency value strategies based on real exchange rates in a cross-sectional portfolio … setting. We find that real exchange rates predict currency excess returns, but in a way that is inconsistent with the notion … of currency value because a high valuation level forecasts a relative appreciation of the foreign currency going forward …

-dollar currency pairs can be traded indirectly by using the US dollar as an intermediate vehicle currency. I present a model of FX … show that dollar dominance increases by 7% after quasi-exogenous spikes in the liquidity of dollar currency pairs occurring …

hypotheses on the possible relationship between volatility and trading volume using data for three major currency futures … to medium term currency relationships may be dominated by trading dynamics and not by fundamentals …

Foreign exchange turnover evolves in a predictable fashion with increasing income. As income per capita rises, currency … trading cuts loose from underlying current account transactions. In parallel, an increasing share of trading in the currency …