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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07:00 | Leading Indicators | Jan | |
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13:00 | CBI retail sales volume balance | Mar | |
13:00 | CBI retail sales volume balance | Mar | |
14:25 | FOMC Member Raphael W. Bostic Speaks | ||
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16:00 | New Home Sales | Feb | |
16:00 | New Home Sales | Feb | |
01:30 | Westpac Consumer Sentiment | Mar |