In today’s interconnected world, the US’ trade deficit is a hot topic, but it doesn’t tell the whole story. Traditional measures miss the intricacies of modern global trade. Discover Revealed Comparative Advantage (RCA) and how it offers a more accurate view. We explore how Global Value Chains (GVCs) have reshaped trade, and why RCA matters. Learn about the USA’s hidden trade strengths and how a new approach is reshaping the way we measure trade deficits.
We’ve gone through the alternative GARCH models now come and read on how to extend the methodology in an attempt to improve its forecasting capabilities either qualitatively or quantitatively. By extending the methodology in the previous articles, you can leverage previous studies done on the impact of Oil Prices on the USD, not necessarily to increase the robustness of your forecasting model but to gain further insights on how the macroeconomy could mess with my returns.
Once familiar with the AIC/SIC testing and possible forecasting models mentioned in the previous article, it’s now time to take in a step by step on this last installment to go through FX forecasting step by step.
Uncover the hidden statistical patterns that drive currency market dynamics and empower your trading decisions. Gain insights into the AIC/SIC testing, GARCH modeling, and in-sample goodness-of-fit tests. Find out which GARCH model emerges as the ultimate tool for FX forecasting
The US Dollar is poised to keep getting stronger in the coming months and it may be a good signal to bet on its continued dominance in the FX market. However, before getting into FX trading it would be good to relearn some statistics and understand the US Dollar further.
Amidst the recent market fluctuations and signs of the Fed’s potential interest rate adjustments, the US regulatory landscape is evolving. As Basel III implementation progresses and the FDIC proposes innovative measures for banks with over $100 billion in assets, a comprehensive review of the Federal Home Loans Banking (FHL Banks) system is on the horizon. However, apart from updating the Federal Home Loans Bank Act to include more members its risk management may need some updates too.