Correlation: why your six positions are really one position
Spreading risk across six trades that all depend on the same thing is not diversification. It is one trade at…
Tag: US Dollar
Every story we have filed in this section, newest first.
Forward guidance: how central banks move markets without moving rates
Policy works through expectations, not through the overnight rate itself. That makes the words a committee chooses a policy instrument…
Central Banks
Quantitative tightening: the balance sheet as a policy tool
Shrinking a central bank balance sheet removes a price-insensitive buyer from the bond market. The effect is slow, hard to measure, and occasionally abrupt.
Forex News
AUD/USD: a commodity currency that trades on someone else’s economy
The Australian dollar responds to Chinese industrial demand and global risk appetite more reliably than to Australian data. That makes it a growth proxy first and…
Forex News
USD/CAD: the oil link that works until it doesn’t
The Canadian dollar tracks crude closely enough to tempt traders into treating it as an oil proxy. The relationship breaks at exactly the moments that cost…