Special Report

Global Perspective On Currencies: A PCA Approach For The FX Market

16 Sep 2016

by Mathieu Savary, Chief Strategist, Developed Markets ex US & Head of Research Innovation

We extracted the key factors driving currency returns; these variables approximate the dollar, EM spreads, and commodities. Any currency's sensitivity to these factors can be estimated, offering a great degree of flexibility for investors to generate trade ideas. Based on our macro views, this approach recommends being short commodity currencies and being long the dollar. The BoJ, BoE, and Riksbank are also covered.

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BCA Research | Foreign Exchange Strategy

Helping guide portfolio managers, CIOs, and traders with actionable overlay strategies and profitable trading ideas. A bonus is insights for other asset classes, from a currency perspective.