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.