Academics and market professionals have done their bit in producing
literature about the mechanics of foreign exchange markets and the theories
underpinning them.
But relatively little is written on how to explore the
practical intermarket relationships that shape currencies via interest rates,
equities, and commodities. Most investors have come across the notion
of interest rates’ impact on foreign exchange rates, but have yet to grasp
the situations when interest rates and central bank policy are displaced
by shifting risk appetite and economic growth.
