The main goal of this article is to provide an answer to the question: does anything forecast
exchange rates, and if so, which variables? It is well known that exchange rate fluctuations …

This chapter surveys recent theoretical and empirical contributions on foreign exchange rate
determination. The chapter first examines monetary models under uncovered interest parity …

We show the existence of a very short-term relationship at the daily frequency between
changes in the price of a country's major commodity export and changes in its nominal …

Since the term structure of interest rates embodies information about future economic
activity, we extract relative Nelson-Siegel (1987) factors from cross-country yield curve …

Recent research has found that the Taylor-rule fundamentals have power to forecast
changes in US dollar exchange rates out of sample. Our work casts some doubt on that …

In a no-arbitrage framework, any variable that affects the pricing of the domestic yield curve
has the potential to predict foreign exchange risk premiums. The most widely used interest …

We may find numerous works in the existing literature regarding the cohesion between oil
prices and exchange rates, yet an exact shape of the relationship remains undefined. By …

In this paper, we use Google Trends data for exchange rate forecasting in the context of a
broad literature review that ties the exchange rate movements with macroeconomic …

This article uses real‐time data to show that inflation and either the output gap or
unemployment, variables which normally enter central banks' Taylor rules, can provide …

This paper explores whether gold prices have a reliable out-of-sample relationship with the
Australian dollar/US dollar nominal and real exchange rates using daily and quarterly data …