Resources
Liquidity & Risk
Global liquidity, risk-on/risk-off, safe-haven flows and funding currencies.
All Liquidity & Risk Articles
Cross-Currency Basis and Dollar Funding: A Guide for Forex Traders
What is the cross-currency basis? Covered interest parity, FX swaps, dollar funding demand, basis widening, central-bank swap lines and practical interpretation for FX.
Funding Currencies Explained: Why JPY and CHF Matter in Global Markets
What is a funding currency? Why JPY and CHF serve as funding currencies, how carry trades work, why funding currencies strengthen in stress and how they differ from safe havens.
Carry Trades: How the FX Funding Trade Shapes Currency Markets
Carry trades involve borrowing in a low-yielding currency to invest in a high-yielding one. This guide explains how carry trades work, the role of funding currencies like JPY and CHF, carry trade unwinding, and how carry dynamics affect currencies.
COT Data for Forex Traders
COT (Commitment of Traders) data reveals how large speculators and commercial traders are positioned in currency futures. This guide explains how to read COT data and use it to identify positioning extremes.
FX Volatility: How Implied and Realised Vol Shape Currency Trading
FX volatility measures the magnitude of currency price movements. This guide covers implied vs realised volatility, volatility regimes, options risk reversals, and how volatility dynamics affect currency trading decisions.
Global Liquidity and Forex
Global liquidity — the supply of money and credit worldwide — is a powerful macro driver of currency markets. This guide explains what global liquidity is, how it affects currencies and how to track it.
Risk-On vs Risk-Off: What It Means for Currencies
Risk-on and risk-off regimes drive currency flows between growth-sensitive and safe-haven currencies. This guide explains what risk-on/risk-off means, which currencies benefit in each regime and how to identify the current regime.
Safe-Haven Currencies: Why USD, JPY, and CHF Strengthen When Markets Panic
Safe-haven currencies (USD, JPY, CHF) strengthen during periods of market stress. This guide explains what makes a currency a safe haven, when safe havens strengthen, and how to trade risk-off dynamics in FX.