Thanks for this. awesome primer ! I do have a question. How do you align the understanding/direction of BOP into the timeframe at which you're trading? It seems these short-medium term moves, 1 week to a 2 months are driven by events(market expectations of monetary policy, geopolitics, rates).
Is the BoP more long term, say 6 months-1year?
Sometimes it seems like a currency can deviate from having positive BoP due to the short term catalysts. Maybe I am misunderstanding. Thank you in advance💪🏽
Thanks for this. awesome primer ! I do have a question. How do you align the understanding/direction of BOP into the timeframe at which you're trading? It seems these short-medium term moves, 1 week to a 2 months are driven by events(market expectations of monetary policy, geopolitics, rates).
Is the BoP more long term, say 6 months-1year?
Sometimes it seems like a currency can deviate from having positive BoP due to the short term catalysts. Maybe I am misunderstanding. Thank you in advance💪🏽
You can nowcast BoP
Also remember, if the BoP has to net out, you can model the asset side live based on market cap and weighted returns
Got it ! makes sense. Thank you for clarification
Another great article! I’m gonna re-read it
several times, so much info to absorb. The king of alpha sharing keeps going 🔥
✊🏻🔥