By Michael J. Casey
Under [Jesper Toft’s Global Currency Union] plan, the two parties in a cross-border transaction will still do business in their home currencies but their contract will be denominated in “global currency units” whose value is determined by a unique index key based upon a weighted basket of currencies. Because of the counterbalancing and risk-spreading qualities in the currency relationships within that basket, the index key sharply lowers the prospective exchange rate volatility for the two parties to the contract. In other words, it allows firms to forget about the risk of big currency losses and focus on doing business with each other………
via FX Horizons: Danish Businessman Quietly Seeks FX Revolution – WSJ.com.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.