My aim for this newsletter has always been to discuss algorithmic modelling and macroeconomic theory, currently with a focus on the foreign exchange markets, and to attempt to link the two together to create a series of macro trading dashboards, strategies and insights. The purpose of these is not just for the FX trader, but also the economist or simply the enthusiast. My aim is for both myself and my readers to gain a deeper understanding of how the “big dogs” see the markets. Most traditional investment banks rely on fundamental analysis, an understanding of the “bigger picture.” These banks don’t believe in purely technical analysis, because this doesn’t give enough significance to what is expected to drive these markets in the future -> supply and demand. In order to determine which direction we think a currency pair might be headed, we have to consider the pair as two economies essentially opposing each other. We have to evaluate each economy for its strengths and weaknesses and based on this, determine the direction we think a pair is headed.
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My aim for this newsletter has always been to discuss algorithmic modelling and macroeconomic theory, currently with a focus on the foreign exchange markets, and to attempt to link the two together to create a series of macro trading dashboards, strategies and insights. The purpose of these is not just for the FX trader, but also the economist or simply the enthusiast. My aim is for both myself and my readers to gain a deeper understanding of how the “big dogs” see the markets. Most traditional investment banks rely on fundamental analysis, an understanding of the “bigger picture.” These banks don’t believe in purely technical analysis, because this doesn’t give enough significance to what is expected to drive these markets in the future -> supply and demand. In order to determine which direction we think a currency pair might be headed, we have to consider the pair as two economies essentially opposing each other. We have to evaluate each economy for its strengths and weaknesses and based on this, determine the direction we think a pair is headed.