Tham khảo tài liệu 'currency strategy a practitioner s guide to currency investing hedging and forecasting wiley_2', tài chính - ngân hàng, ngân hàng - tín dụng phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 56 Currency Strategy Table Currency decision template using a risk appetite instability indicator Risk-seeking stable 40 Neutral 40-50 Risk-aversion unstable 50 Asset Raise currency exposure Reduce currency Eliminate currency managers to high carry currencies exposure to high carry currencies exposure to high carry currencies Currency speculators Buy high carry currencies Short low carry safe haven currencies Close positions Short high carry currencies Buy low carry safe haven currencies Corporations Hedge high carry currency strategically Only hedge high carry currency exposure tactically Only hedge high carry currency exposure tactically long high carry short funding currency positions are reduced. Finally when market conditions deteriorate to the extent the index moves into risk-aversion unstable territory above 50 high carry currencies are cut across the board to the increasing benefit of safe havens such as the Swiss franc and the Japanese yen. The relationship between risk appetite and specific currency performance has been proven statistically within academic research using correlation analysis. From this we can come up with a rough template for currency trading hedging and investing decisions using the index Table . Note that this is not meant to be an exact list of recommendations. As with any model there will be exceptions. Rather it is meant as a template against which specific currency exposures should be measured on a case-by-case basis. There is actual fundamental grounding for using a risk appetite indicator for currency hedging trading or investing. Since the end of the Cold War there has been much greater emphasis on tightening fiscal and monetary policies in order to bring inflation down. As a result real interest rates have been rising. In the developed markets capital flows over the medium to long term to those currencies with high real rates. The discipline associated with membership of the EU and the Euro has exacerbated this process .
