Can investors predict G10 spot price by inflation rate and interest rate data?

Published on Apr 8, 2023. Can investors predict G10 spot price by inflation rate and interest rate data? After studying International Parity Condition on G10, we would like to further study the market directional insights based on inflation rate and interest rate data. We examine the performance of the trading strategy by incorporating XGBoost from Machine Learning as the prediction model and generating the trading signal from it. Last by not least, we would study the importance of inflation rate and interest rate and PCA enhancement schema on XGBoost.