This paper analyses the role of macroeconomic news surprises from different economies in explaining the behavior of exchange rates of Pak rupee. To study the extent of exchange rate fluctuations and variations explained by macroeconomic news and direction of similar news’ effect on different...

This paper presents the review of theoretical literature on the effects of macroeconomic news announcements and order flow on exchange rates. It presents how foreign exchange market reacts to macroeconomic news announcements? How information (both public and private) is incorporated into...