Discussing the article: "Analyzing weather impact on currencies of agricultural countries using Python"

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Check out the new article: Analyzing weather impact on currencies of agricultural countries using Python.

What is the relationship between weather and Forex? Classical economic theory has long ignored the influence of such factors as weather on market behavior. But everything has changed. Let's try to find connections between the weather conditions and the position of agricultural currencies on the market.

Professor Edward Saykin of the University of Michigan, conducting a study in 2023, showed that on rainy days, traders make decisions that are 27% more restrained than on sunny days.

This is especially noticeable in the largest financial centers. On days when temperatures are above 30°C, trading volumes on the NYSE drop by an average of about 15%. On Asian exchanges, the atmospheric pressure below 740 mm Hg correlates with increased volatility. Long periods of bad weather in London lead to a noticeable increase in demand for safe haven assets.

In this article, we will start with collecting weather data and work our way up to creating a complete trading system that analyzes weather factors. Our work is based on real trading data for the last five years from the world's major financial centers: New York, London, Tokyo, Hong Kong and Frankfurt. Using up-to-date data analysis and machine learning tools, we will obtain real trading signals from weather observations.


Author: Yevgeniy Koshtenko

 

for many people it will be a revelation that CAD is not so much oil, but feed grain mixes :-))

What is mostly traded on the national exchanges for the national currency, it affects...

for USDCAD and even just agricultural seasons should be traceable.

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