Quant Radio: Forecasting Exchange Rates with AI

Can AI really predict currency movements better than traditional models—or even coin flips?

In this episode, we explore cutting-edge research that uses generative AI, like ChatGPT and DeepSeek, to analyze decades of economic data from G10 countries. Discover how AI-derived “fundamental sentiment scores” are used to trade currencies—and why the results are surprisingly good. We break down the strategies, results, theory (think Taylor Rule), and the rigorous steps taken to rule out look-ahead bias. A must-listen for anyone curious about AI’s role in reshaping financial forecasting.

Find the full research paper here: https://community.quantopian.com/c/community-forums/generative-ai-and-fundamentals-based-exchange-rate-forecasting

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Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.