**Yes I did try doing a search and just found some idiotic copy-paste article about the IRS, if you don’t believe me search Direct quotes and click the one that starts with “Confessions of…”** That being said, for those of us not sitting on an FX trading desk, how can one best learn the intuition behind exchange rates? I’ve read CFAi and Schweser and although I can make up ad hoc measures to remind me I just would prefer to understand it intuitively. By this I mean understand it as one might understand that bit about prepayment risk in relation to the path of interest rates, and the downstream effects on tranches, IO’s, PO’s, etc. I’ve resolved to just do a bunch of problems till it sticks but wondered if anyone had thoughts beyond the obvious “read it again” & “learn through the pencil” type advice. Best,
If you are a US investor and the quote is Y/$ it is an indirect quote. Work from there.
direct quote = price of an asset in domestic currency where the asset (instead of say a stock) is foreign currency