INTERNATIONAL FISHER EFFECT - IFE
An economic theory which states an expected change in the present exchange rate between any two currencies is roughly equivalent to the difference between two nations’ nominal interest rates at a given time. Named after American economist Irving Fisher, the higher the inflation rate, the lower the value of currency. Computed as:
E = 11 - 12 / 1 + 12 = 11 - 12
Where
E - % change in the exchange rate
11 - country A’s interest rate
12 - country B’s interest rate
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ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 07:00 | Leading Indicators | May | |
| 10:00 | Ifo Business Climate Index | Jul | |
| 10:00 | Ifo Current Assessment | Jul | |
| 10:00 | IFO - Expectations | Jul | |
| 10:00 | Private Sector Credit | Jun | |
| 10:00 | M3 Money Supply | Jun | |
| 12:00 | CBI retail sales volume balance | Jul | |
| 14:30 | Durable Goods Orders | Jun | |
| 01:01 | BRC Shop Price Index | Jul |
