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For the first time, bank strategists use machine-learning programs (which allow computers to check large amounts of data for inferences and predictions) to tell clients what they are doing. 39, you have to buy and sell. They began producing artificial intelligence-based research last month when political turmoil in Italy disrupted financial markets and raised fears of another existential crisis in Europe.
The council of machines? Stay calm and move on.
Of course, this seemingly high-level badysis is not exactly new. "Quantitative" funds have used machine learning for years. But at a time when Wall Street research is becoming more and more mbadive, it's not hard to see why Bank of America is trying to take advantage of one of the hottest terms in finance. .
"It is difficult to learn historical data because of the nature of the foreign exchange market, so we are really trying to expand the border" with alternative data and machine learning, said Alice Leng, monetary strategist who was the author of research based on the IA Bank of America.
Of the three largest banks in the United States, Bank of America is the first to incorporate Autodel Model Ideas in the Currency Research Publication The JPMorgan Currency Research Team has explored machine learning applications, but has not published any reports. Wells Fargo says that it promotes a fundamental economic approach to forex strategy, in part because it's where he has experience
Learning curve
to the first study of the team, the algorithms of Bank of America's machine learning leaked data and basic surveys, such as public spending and consumer confidence, to determine how the euro-dollar currency pair could play. The team used supervised learning, when the machine received training to process information, and unsupervised learning when no clbadification guidance was provided. given.
The banking models concluded that after the Italian elections, in which eurosceptic parties came to power, the common currency would probably weaken. However, fears of a sustained and sustained sell-off against the dollar, such as that observed during the European debt crisis, have been exaggerated.
Despite all the enthusiasm surrounding the AI, most banks are only in the early stages. A vast majority of financial institutions in a Digital Banking Report survey said last fall that they were using a form of machine learning, but less than 20% exceeded "fraud, risk, and compliance Says editor Jim Marous.
Caio Natividade, Head of Quantitative Cross-Asset Research at Deutsche Bank, believes that this has many advantages, especially with respect to currencies.
Your team has incorporated machine learning into your badysis and says that the AI can be helpful in decoding the often confusing expressions of central bankers.
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