Fundamental EUR/USD signal in real-time test: It works!

Article by Dr. Christian Jasperneite

Flexible exchange rates, particularly in the context of the EUR/USD exchange rate, are a constant challenge for investors and companies. Static hedging, such as forward exchange transactions, is often used to hedge against exchange rate risks. However, dynamic hedging could be a more cost-efficient alternative, as it only becomes active when opportunities arise.

M.M.Warburg & CO has developed an overlay model that has been forecasting the EUR/USD exchange rate for eleven years. How has this model performed in retrospect? Quite well, in our opinion - more on this in the current issue of "Economic Situation and Strategy".