Emerging Currency Markets to Shift from Series Models to Deep Learning

Industry analysts agree that artificial intelligence and big data have had a profound effect on the global financial industry. The financial analytics market is projected to reach $11.4 billion within the next three years. This statistic has been cited numerous times since it was first published by MarketsandMarkets. As compelling as this statistic is, it glosses over many of the nuances pertaining to data analytics and artificial intelligence in the financial sector. One discussion that warrants more attention is the growing relevance of deep learning in the currency markets of emerging economies. Deep Learning Shows Promise for Emerging EconomiesA 2017 study published by the Termopil National Economic University in Termopil, Ukraine focused on this emerging topic. The study, titled Deep Learning for Predictions in Emerging Currency Markets talked about the role of artificial intelligence algorithms in currency markets in Africa, Eastern Asia, South America, the Middle East and remote parts of Europe. “Machine learning methods such as shallow neural networks have higher predictive accuracy than time series models when trained on input features carefully crafted by domain knowledge experts. The preponderance of research focuses on developed currency markets. The paucity of research in emerging currency markets, and the crucial role ...


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