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

We have searched fur correlations and anticorrelations with respect to curr encies 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 l aw behavior describing the rms, deviation of the fluctuations as: a functio n of time. We have compared the time-dependent exponent for these four exch ange rates, and observe the role of the DEM, and the other currencies formi ng the EUR. A simple investment strategy based on the local DFA technique s hows one carl obtain appreciable gains, even taking into account some modes t transaction fee. We compare tile tinle dependent alpha exponent of the DF A for various exchange rates as in a correlation matrix for estimating resp ective influences.