Key new findings on price convergence from the euro
After spluttering results in the original eurozone, later adopters of the euro in Central and Eastern Europe saw strong price convergence with other EU nations, says new study from Cambridge Judge Business School. Professor Paul Kattuman When 12 European countries…
The pricing of foreign exchange and the unique role of US Dollar risk
by Brandon A. McBride, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance Trading in over-the-counter foreign exchange (FX) markets reached $7.5 trillion per day in April 2022 across all FX instruments (BIS, 2022), making it…
Voluminous breakthrough
Foreign exchange volume helps predict the following day's returns, finds study co-authored by Professor Lucio Sarno of Cambridge Judge Business School. Lucio Sarno The daily volume of foreign exchange (FX) trading helps predict returns on currency trading the next day,…
The long view
Credit Suisse Global Investment Returns Yearbook 2020, co-authored by Professor Elroy Dimson of Cambridge Judge Business School, finds that equities remain the best long-term investment. The Credit Suisse Global Investment Returns Yearbook 2020, co-authored by Professor Elroy Dimson of Cambridge…
OMFIF: Gold and the future of the global reserve currency system
Michael Kitson, University Senior Lecturer in International Macroeconomics at Cambridge Judge, was a guest panellist on a podcast of the Official Monetary and Financial Institutions Forum. Michael talked about the state of the gold market and the internationalisation of China’s…
Bloomberg: Carry on like nothing really matters. Until it does
A study that looks at a century of carry trading co-authored by Dr David Chambers, Reader in Finance at Cambridge Judge Business School, is featured in Bloomberg. The study found that “a strategy of borrowing in low-yielding currencies and parking…
The ‘carry’ trade
The carry strategy in foreign exchange markets generates positive average returns over the long run, but it can experience losses when there are shifts from fixed to floating currency regimes, finds a new study co-authored by Dr David Chambers of…
Venturing forth: GlobalTravelWallet
A digital alternative to cash – that's the idea behind GlobalTravelWallet, a startup that is supported by the Cambridge Social Ventures programme, part of the Cambridge Centre for Social Innovation at Cambridge Judge Business School. Founder and CEO Segun Oni…
Bank of England signals price rises as pound in Britons’ pockets gets smaller
by Michael Kitson, University Senior Lecturer in International Macroeconomics, Cambridge Judge Business School The Bank of England has published its latest Inflation Report alongside forecasts for economic growth and a decision to hold interest rates. The background to those announcements…
If you’re so smart
John Maynard Keynes struggled as a foreign-exchange trader, finds the first detailed study of the famous economist as currency speculator. A detailed new study of the chequered currency-trading record of John Maynard Keynes might make today's overconfident currency speculators think…
