The New FX Model: PMI Differentials?
One of Australia’s finest, and best market analyst, Greg McKenna, and more important, our good friend, posits a new exchange rate determination model: PMI differentials.
We cut our teeth as a young economist on Anne Krueger‘s book, Exchange Rate Determination. The book is dated, but we highly recommend it, a good and quick read.
FX traders use many models to justify trades at a period in time, such as:
- GDP growth differentials;
- Interest rate differentials;
- FX reserve levels (mainly in the emerging markets, especially);
- Current account balances;
- Capital flows;
- Purchasing Power Parity (long-term model);
- Other;
- and, now, Greg’s PMI Differentials
FX traders are married to none of the above, and switch-and-forth between the various FX models, or, at least, they act as if they do.
The key to success in trading is to understand what is the dominant model driving the market at any given time and determining the trend if one exists.
#USD longs anyone????#forex #markets #trading https://t.co/efCVrwwhnL
— Greg McKenna (@gregorymckenna) October 2, 2018
Source: https://macromon.wordpress.com/2018/10/02/the-new-fx-model-pmi-differentials/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).