to unwinding of carry tradesleadingto unwinding of carry trades

infinite arbitrage opportunitiescreatesinfinite arbitrage opportunities

a bout of currency depreciationcan triggera bout of currency depreciation

in the higher interest rate currency depreciating over timehave resultedin the higher interest rate currency depreciating over time

the dollar 's exchange rate in the pastinfluencedthe dollar 's exchange rate in the past

a lower EUR / RON exchange rate ,(passive) possibly triggered bya lower EUR / RON exchange rate ,

exchange rate movements , which feed through into prices and on to GDP , and thus contribute to determining the GDP responsecauseexchange rate movements , which feed through into prices and on to GDP , and thus contribute to determining the GDP response

to exchange rate changes – interest rate paritycan leadto exchange rate changes – interest rate parity

The short - run dynamics of the real exchange rate(passive) are also influenced byThe short - run dynamics of the real exchange rate

people to sell dollars to buy euros to get a higher return on investment and that 's why you 're seeing pressure on the dollarhad causedpeople to sell dollars to buy euros to get a higher return on investment and that 's why you 're seeing pressure on the dollar

the only major currency pairs(passive) being influenced bythe only major currency pairs

3 months forward exchange rate to depreciate not exactly equal to the rise in inflation differential butcauses3 months forward exchange rate to depreciate not exactly equal to the rise in inflation differential but

in a net earning or payment of interestwill resultin a net earning or payment of interest

largely to fundamental underpinnings of the currency carry tradecontributelargely to fundamental underpinnings of the currency carry trade

the cost ( or profit ) linked to FX hedgingwill influencethe cost ( or profit ) linked to FX hedging

because the position is held in a currency with higher interest rate ... is applied to the trader ’s accountresultedbecause the position is held in a currency with higher interest rate ... is applied to the trader ’s account

from the sizable reallocation of net capital flows to the United States away from equities and direct investment toward fixed - income securitiesresultingfrom the sizable reallocation of net capital flows to the United States away from equities and direct investment toward fixed - income securities

the profit ( if selling USD / RUB or EUR / RUB futures ) or loss ( if buying the same(passive) caused bythe profit ( if selling USD / RUB or EUR / RUB futures ) or loss ( if buying the same

because the position is held forex time swap free in a currency with higher interest rate ... is applied to the traders accountresultedbecause the position is held forex time swap free in a currency with higher interest rate ... is applied to the traders account

short term investments to flow out of U.S. dollars and into euros , worsening the dollar 's slidehas causedshort term investments to flow out of U.S. dollars and into euros , worsening the dollar 's slide

a net movement of short - term funds in the direction required to offset the temporary deficit or ... in the opposite case , to reduce a temporary surplus that is embarrassing to otherswill causea net movement of short - term funds in the direction required to offset the temporary deficit or ... in the opposite case , to reduce a temporary surplus that is embarrassing to others

changes in forward rates in exchange marketalso triggerchanges in forward rates in exchange market

changes in exchange ratescausechanges in exchange rates

from the term and the personal loan ratingresultfrom the term and the personal loan rating

Spread EUR / USD(passive) clearly influenced bySpread EUR / USD

the tonewill setthe tone

the Carry Trade strategycreatethe Carry Trade strategy

to traders selling lower- yielding currencies to fund the purchase of higher - yielding currenciesleadto traders selling lower- yielding currencies to fund the purchase of higher - yielding currencies

a number of exchange ratesinfluenceda number of exchange rates

in capital out flowcan resultin capital out flow

to large portfolio inflowshave leadto large portfolio inflows

the forward discount or premium(passive) caused bythe forward discount or premium

the weakening of the dollar relative to the Euro and the Poundare causingthe weakening of the dollar relative to the Euro and the Pound

a continuing capital outflow(passive) caused bya continuing capital outflow

volatility in international marketspromptvolatility in international markets

in part by central bank policy divergencescreatedin part by central bank policy divergences

when the Federal Reserve tightens policy as other central banks such as the Bank of Japan and the European Central Bank loosenare causedwhen the Federal Reserve tightens policy as other central banks such as the Bank of Japan and the European Central Bank loosen

foreign exchange markets ... and one could assume that the euro and dollar forward rates capture the average levels of the relevant part of the two yield curvesinfluenceforeign exchange markets ... and one could assume that the euro and dollar forward rates capture the average levels of the relevant part of the two yield curves

in unwanted volatility in domestic financial marketsmay resultin unwanted volatility in domestic financial markets

to widen further 2year government bond yields ( short termsetto widen further 2year government bond yields ( short term