Does speculation facilitate price discovery or instability? If it is price discovery, it is beneficial and should be … characteristics by analysing those times when speculation in the foreign exchange market is most extreme. A series of event studies … are conducted on the extremes of speculative sentiment and speculative activity. If speculation is noise, extreme …

This study examines profits and speculation in the USD/EUR trading of a bank in Germany over a four-month period …. Dealing activity at the bank generates profits but speculation does not seem to contribute to this. We find that speculative … reveals that there is hardly any room for revenues from speculation. …