Currency markets are a source of fascination to market players and observers alike. The momentum and the volatility of the markets, the wide range of factors affecting exchange rates and their impact on the economy as a whole make this a particularly varied and interesting topic. There is good reason why currency market analysis is regarded as one of the key economic disciplines.
This publication looks at various aspects of the foreign currency markets. It starts with an overview of the main factors determining exchange rates and a brief history of the currency markets. However, the main focus is on how the currency markets work, with particular reference to new financial instruments. The aim is to provide a balanced insight into the theory and workings of the currency markets.
