We investigate the impact of monetary policy on the exchange rate using an event study with intraday data for four countries. Carefully selecting the sample periods ensures that the policy change is exogenous to the exchange rate. An unanticipated tightening of 25 basis points leads to a rapid...

This paper uses intraday data to estimate the effect of changes in monetary policy on the exchange rate. We use an event study with carefully selected sample periods for four countries (Australia, Canada, New Zealand and the United Kingdom) to ensure that the change in monetary policy is...

Using weekly data on the positions of different types of participants in currency futures markets we present evidence that suggests speculators are profitable. Across six currencies, speculators’ gross profits are seemingly positive in 60 per cent of weeks. The profits are significant even...