Commodity-Currency Interactions
April 27, 2016 - Commodity Futures, Currency Trading
Do commodity price changes predict currency exchange rate fluctuations for commodity-exporting countries? In their March 2016 paper entitled “When the Walk is Not Random: Commodity Prices and Exchange Rates”, Emanuel Kohlscheen, Fernando Avalos and Andreas Schrimpf analyze relationships between commodity prices and exporter exchange rates. They first construct daily commodity export price indexes tailored to 11 commodity-exporting countries (Australia, Brazil, Canada,… Keep Reading