currencies-and-fx
Currencies and FX
Purpose
Analyze currency markets including spot and forward exchange rates, interest rate parity relationships, FX hedging mechanics, cross rate derivation, and carry trade dynamics. This skill is essential for international investing, currency risk management, and understanding how interest rate differentials drive forward exchange rates.
Layer
2 — Asset Classes
Direction
both
When to Use
- User asks about currency analysis, exchange rates, or FX markets
- User asks about FX hedging or managing currency risk in international portfolios
- User asks about interest rate parity (covered or uncovered)
- User asks about carry trades or currency carry strategies
- User asks about cross rates or currency quoting conventions
- User asks about forward exchange rates or forward premium/discount
- User asks about purchasing power parity (PPP) or real exchange rates
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