Category Archives: FX

Foreign exchange (FX) rate modelling

Collaboration between University of Zagreb and University of Rijeka (Prof. Sasa Drezgic). 

This research proposes a novel method for modelling the direction of change of the foreign exchange rates by exploiting specific features of support vector machines and oscillating technical indicators. Proposed model and modelling method are tested on three currency pairs EURUSD (euro vs. U.S. dollar), GBPUSD (pound sterling vs. U.S. dollar) and USDJPY (U.S. dollar vs. Japanese yen). Preliminary results are encouraging. Areas for improvement and further development of the model and modelling method are identified.