James Chen, CMT is an expert trader, investment adviser, and global market strategist. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...

Learn how overshooting impacts exchange rate volatility and why Dornbusch’s model is pivotal in explaining the short-term departure from price equilibrium.

Put simply, exchange rates compare the value of one currency to another. They measure how much of one currency it takes to purchase a unit of another. Exchange rates are ultimately determined in ...

Being able to forecast exchange rates provides insight into the movement of the global economy. Many methods of forecasting currency exchange rates exist, including purchasing power parity, relative ...