Currency Strategy: A Practitioner's Guide to Currency Trading, Hedging and Forecasting (Hardcover)

~ (Author) "The starting point of "fundamental" currency analysis is the exchange rate model, or the attempt by economists to provide a logical framework with which to..." (more)
Key Phrases: traditional exchange rate models, risk appetite indicator, hedging benchmark, Federal Reserve, Hong Kong, New York (more...)

Editorial Reviews

Product Description

John Maynard Keynes’ reference to the ‘animal spirits’, that elemental force which drives financial markets in herd-like fashion, was applied to the stock market. However, he might as well have been referring to the currency market, for the term sums up no other more perfectly. A market that is volatile and unpredictable, a market that epitomises such a concept as the ‘animal spirits’, surely requires a very specific discipline by which to study it.

This is precisely what Callum Henderson does in this eminently practical and readable book. He provides an analytical framework for currency analysis and forecasting, combining long-term economic valuation models with market-based valuation techniques to produce a more accurate and user-friendly analytical tool for the currency market practitioners themselves.

Written by a market practitioner for fellow professionals whose job is to turn the theory into practice and actually execute the currency market transaction, the book is split into three parts:

• Theory and practice
• Regimes and crises
• The real world of the currency market practitioner.

From the Inside Flap

Rapid movements in currency markets have been a common feature of recent years, often to the detriment of traders and investors. The ability to predict the collapse of a currency is essential to safe and successful investment in these markets. Ultimately in such a crisis there are no firm rules that can help the practitioner, who needs to rely on quick wits and a masterly command of all the tools at their disposal.

Currency Strategy outlines the key tools available to practitioners in the field, their benefits and limitations, and discusses fundamental analysis, technical analysis, behavioural finance, flows and the authors own modelling techniques for the prediction of a currency crisis.

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Product Details

• Hardcover: 234 pages
• Publisher: Wiley; 1 edition (November 11, 2002)
• Language: English
• ISBN-10: 0470846844
• ISBN-13: 978-0470846841
• Product Dimensions: 9.5 x 7.3 x 0.8 inches
• Shipping Weight: 1.4 pounds
• Average Customer Review: 3.6 out of 5 stars  See all reviews (7 customer reviews)
• Amazon.com Sales Rank: #1,178,095 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

28 of 29 people found the following review helpful:

3.0 out of 5 stars Good as a textbook, but bad as a trader's guide, January 26, 2005

By	ServantofGod - See all my reviews (TOP 500 REVIEWER)

As a professional trader who deals with the ups and downs of the FX market from Monday to Friday for years, particularly with the extreme volatility of USD from last October till now, I am obliged to comment that the book is of little practical/predictive use. Unless you really wanna study academic theories about FX like different kinds of exchange rate regime or exchange rate model (which seldom held themselves), or get reasons to hedge your exposure "completely" for your company's or your own investment portfolio, please give this book a pass.

14 of 16 people found the following review helpful:

4.0 out of 5 stars Very Informative - good for novice traders, January 30, 2004

By	"jay_h02" (New York, NY) - See all my reviews

There is a lot of material in this book that traders should know. Some are minor details, but these are the same details that can determine whether a trade will be profitable. It is divided into three parts towards the end to suit three types of investors: (1) corporate, (2) institutional, and (3) speculator. Obviously not all three will suit you, but you can learn some things from all of them. Take a look.

1 of 1 people found the following review helpful:

4.0 out of 5 stars Good intro to exchange rate determination and risk managment, December 27, 2007

By	John Cairns "FX analyst" (South Africa) - See all my reviews

This review is from: Currency Strategy: The Practitioner's Guide to Currency Investing, Hedging and Forecasting (The Wiley Finance Series) (Hardcover)

This is a good introduction to exchange rate determination in theory and in practice. Useful for someone with a little bit of background into economics or exchange rates who wants to delve a bit more. It is slightly frustrating in that the theories are explained but little is provided in terms of whether the evidence shows it works or not. It also lacks adequate references.

One outstanding feature of this book, and indeed a lot of work by this author, is that it moves beyond just exchange rate forecasting into the realm of exchange rate risk management and other issues pertinent to those who deal in this space.