Foreign Exchange Markets: Theory & Pract

Pre-req: SIPA U6401 - Macroeconomic Analysis. This course aims to provide students with an understanding of the structure and key drivers of the foreign exchange (FX) market – the world’s largest market by turnover. By the end of the course, students will be familiar with the unique features of the FX market, the theoretical basis for currency movements, market drivers, and the interaction of foreign exchange and macroeconomic policy. Practical aspects of the market, including how to monitor and interpret global developments and understand trading conventions, will also be covered.

Grades will be determined by class participation, weekly individual reflections and questions on the readings, a memo, and a final group presentation. The final presentation is intended to help students appreciate the challenges faced by FX market professionals in reviewing currency movements, connecting them to broader macroeconomic themes, and identifying potential future drivers.