FX Impact Intelligence
LSEG Labs Project: FX Impact Intelligence
Identifying important events which have a short-term impact on currency markets.
Making smart trading decisions means staying on top of relevant market events in real time and evaluating their impact on global currencies. Constant monitoring these events, especially breaking news, can be a challenge even for the most experienced FX professionals as only a small proportion of events impact the FX market.
LSEG Labs created the FX Impact Intelligence app to help FX professionals stay on top of the important events impacting currency pairs throughout the day.
Before performing impact analysis, the app uses rules based and machine learning models to filter for FX market related events. Each FX market news cluster then passes through an impact analysis model which identifies currency price jumps and impact trends based on the similar characteristics of historical news events.
FX Impact Intelligence in action
A news impact monitor uses event clustering and filtering models to create a curated feed of events related to currency markets.
Daily impact charts display the impactful events on price charts alongside the daily volume, volatility and spread.
Past similar events analysis display the impactful event alongside similar past events with a comparison across price action, volume, volatility and spread.
What we’re thinking next
LSEG Labs is engaging a small number of customers to take part in an FX Impact Intelligence early access program to help improve and guide the insights and user experience.