Ian Charles Robert Gracias analyzes the relationships between several major international stock markets and currency markets in his book Stock Market and Foreign Exchange Market: An Empirical Guidance.
The slim volume investigates the idea that stock markets are affected by changes in exchange rates, or vice versa. Though separated into multiple chapters, the book divides into roughly two halves: In the first part, Gracias introduces his subject and goals, offers an overview of the topic, and summarizes previous relevant research; the book’s second half details his own research, methodology, results, and conclusion, which shows strong positive relationships for some variables, and no relationship for others.
Gracias holds a Masters of Finance degree and works as a senior technical analyst and commodity and foreign exchange market trader, and although he studies a relatively short timeframe (2012-2014), his statistical research is thoroughly professional, with an abundance of supporting tables and references. One mark of a good researcher is honesty, and Gracias isn’t afraid to acknowledge his mixed findings. In a section called “Research Ethics” the author mentions that his efforts to avoid any undue influence from others prompted him to work alone.
Unfortunately, this solitary work comes at a cost. Written in an academic style that invokes regression analysis and other statistical and technical terms, the narrative is occasionally slowed by clumsy, overly formal writings like this one, in which Gracias refers to himself in the third person: “[..] the researcher is needed to interpret the relevant theories for assessing their relevance related to the research objectives.” The guiding hand of an experienced editor or partner might have improved the book’s readability.
While not beyond the capability of an interested layman, Stock Market and Foreign Exchange Market seems primarily targeted to finance professors, students, and others involved in the statistical analysis of financial relationships. For these readers, Gracias has made a modest but worthy contribution to the ongoing study of the field.
Also available as an ebook.