False Euro (FEUR) exchange rate correlated behaviors and investment strategy

We have searched fur correlations and anticorrelations with respect to currencies as CHF, DKK, JPY, and USD in order to understand tire EUR behavior, In order to do so we have invented a false euro (FEUR) dating back to 1993 and have derived simulated exchange rates of the FEUR. Within the Detrended Fluctuation Analysis (DFA) statistical method we have obtained the power law behavior describing the rms, deviation of the fluctuations as: a function of time. We have compared the time-dependent exponent for these four exchange rates, and observe the role of the DEM, and the other currencies forming the EUR. A simple investment strategy based on the local DFA technique shows one carl obtain appreciable gains, even taking into account some modest transaction fee. We compare the tinle dependent alpha exponent of the DFA for various exchange rates as in a correlation matrix for estimating respective influences.