The fear of Asset Bubbles In FX Markets

Mean reversion is “a concept of normality,” where extreme events can cause an asset to diverge from its long-term averages. For Deutsche Bank Foreign Exchange Macro Strategist Sebastien Galy, the theory of mean reversion works, so long as the underlying economic principles that exert the law of gravity on currency prices don’t change. Looking at currency… Please follow and like us:

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After Paying $1 Billion In Interest, IS SNB Going To Shock?

Swiss banks paid nearly $1 billion in negative interest rate fees in 2017, a recent Reuters report notes, pointing to wealthy bank clients largely storing their cash on the sidelines and, thanks to negative interest rates, paying for the pleasure. In fact, the cash levels rival that seen in the wake of the 2008 financial crisis.… Please follow and like us:

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French election: What does Emmanuel Macron stand for?

Emmanuel Macron’s victory against Marine Le Pen in the French presidential election has been greeted with relief across the country and abroad, but for many French citizens the choice was one made through gritted teeth. Data released by the polling company Ipsos shows 43 percent of French citizens voted for Macron out of opposition to his… Please follow and like us:

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Bernstein Quants – Reverting to mean reversion

As it tactically rotates an investment portfolio from factor to factor, Bernstein’s quantitative team, headed by Alla Harmsworth, looks at value and beta market exposures in Europe, particularly among the banks, and likes what it sees. The on-again, off-again relationship the analysts have with the value factor is on-again, as risk assets are a positive exposure… Please follow and like us:

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