Google Trends Data Enhances FX Nowcasting Modeling, Professor Claims

Adding Google Trends data into macro-economic analysis of the foreign exchange market and global economic picture can improve results, an Italian academic recently told a quantitatively minded audience at a recent Deutsche Bank Markets Research Conference. This is not to say Google Trends data is the pre-eminent source to determine FX market trends, but, like many indicators or quantitative market triggers, it might be best used when in combination with corollary market information.

Google Trends data works best when combined with fundamental macro economic research

When conducting fundamental research, Google Trends data by alone did not improve foreign exchange model performance significantly, noted Professor Levent Bulut, a...