In this paper we study the role of official statements and speeches given by central bank authorities in charge of foreign exchange policy. We investigate the impact of statements that comment on and confirm such interventions on the day of the intervention on the two major foreign exchange...

In this paper, we study the role of official statements and speeches given by authorities in charge of direct foreign exchange market interventions. We investigate the impact of commenting and confirming statements related to such interventions at a daily frequency for the two major foreign...

Intervening in the FX market implies a complex decision process for central banks. Monetary authorities have to decide whether to intervene or not, and if so, when and how. Since the successive steps of this procedure are likely to be highly interdependent, we adopt a nested logit approach to...