COVERED INTEREST ARBITRAGE
Investment strategy in which investor employs a forward contract to hedge against exchange rate risk. It uses favorable interest rate differentials to invest in a higher-yielding currency, and hedges the exchange perils through a forward currency contract. This is feasible if the cost of hedging the exchange risk is lower than the additional return generated by investing in a higher yielding currency. An investor who employs this strategy makes sport and forward market transactions at the same time, seeking to obtain riskless profit by combining currency pairs.
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Market capitalization-weighted index encompassing US-based firms in the Dow Jones Sustainability North America Index, comprised of the leading 20% ...
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ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 12:00 | CBI retail sales volume balance | Apr | |
| 01:01 | BRC Shop Price Index | Apr | |
| 01:30 | Unemployment Rate | Mar | |
| 05:04 | BoJ MPC Interest Rate Announcement | Apr | |
| 05:04 | Monetary Policy Meeting Minutes | ||
| 05:04 | BOJ Outlook Report | ||
| 07:00 | BOJ Core CPI | Mar | |
| 08:30 | Bank of Japan Press Conference | ||
| 09:00 | Unemployment Rate | 1 quarter |
