Reviewed by Aug 27, 2020| Updated on
A currency strategist refers to a professional who works in the currency market. The currency strategist measures the impact of various economic changes and geopolitical changes on the value of currencies in the forex market. The profile of a currency strategist is similar to a financial analyst, however, the study pertains to international trends in comparison to national-level analysis.
Understanding Currency Strategist
- A currency strategist estimates the value of various currencies to the US dollar. Their job includes researching and doing a technical analysis of charts and tables to predict values. A currency strategist generally works for a forex broking firm. Such firms undertake research and technical analysis of the price movements in the forex market.
- The tools used by a currency strategist include statistical tools, financial tools and quantitative analysis of the data. Their analysis must be on past data and on present and future market conditions. The projections should be mathematical and objective and must be quick in a forever changing forex market.
- Currency strategies are part of technical analysis for most traders, whether individual or institutional investors. The currency strategists should have a sound knowledge of international finance, geopolitical issues and economics. It is important to have a degree in finance or economics. It is good to have at least an year of experience in forex markets.
- A currency strategist will find it useful to have hands-on experience in the forex market before becoming a currency strategist. The job of a currency strategist requires presentation of data and information in a useful manner to investors of different backgrounds. The person should have information about economic developments in different countries especially significant economies of the world.
A currency strategist may need to work with different types of finance professionals while gathering and analysing data. The strategist can also assist individual companies who propose foreign investments or raise money from the foreign market. The assistance can be in planning business in foreign ventures, deployment of funds, remittances into India and servicing costs of foreign debt.