Comparison Of Currency Movement Before And After October 2008

The globalization of financial markets has motivated an extensive literature that investigates issues of linkages, spillovers and contagion among financial instruments. Investment and hedging activities take place because certain fundamental relationships exist between and among currencies that persist despite the surrounding uncertainty. This paper uses the association analysis data mining technique to compare rules related to directional movements of eight major currencies before and after the financial crisis of October 2008. The currencies included in the search for rules are the Australian dollar, the Japanese yen, the euro, the Swiss franc, the British pound, the Canadian dollar, the Mexican peso, and the Brazilian real. Some of the rules that remained stable, during a seven-year period, on both sides of the 2008 financial crisis are examined and compared.