the successful key of trading in the forex market is the selection of correct exchange in proper time based on an exact prediction of future exchange rate. foreign exchange rates are affected by many correlated economic, political and even psychological factors. therefore, in order to achieve a profitable trade these factors should be considered. the application of intelligent techniques for fo...

We investigate intra-day foreign exchange (FX) time series using the inverse statistic analysis developed in [1,2]. Specifically, we study the time-averaged distributions of waiting times needed to obtain a certain increase (decrease) ρ in the price of an investment. The analysis is performed for the Deutsch Mark (DM) against the $US for the full year of 1998, but similar results are obtained f...

GROWING BODY OF theoretical literature, known as the study of securities market microstructure, deals with the behavior of participants in securities markets and with the effects of information and institutional rules on the economic performance of those markets. These institutional factors may arise from technology, tradition or regulation. Microstructure and its impact are important, because ...

Central bank intervention plays a major role in managing exchange rate volatility. In comparison to advanced economies, emerging market economies are generally active the forex as excessive volatility of local currency persists. The BRICS countries (Brazil, Russia, India, China and South Africa) influencing international financial system. paper empirically investigates efficacy central case cou...

We construct a novel database of monthly foreign exchange interventions for 49 countries over up to 22 years. build on text classification approach that extracts information about from news articles and calibrate our procedure data actual interventions. This new dataset allows us document stylized facts the use neither publish their nor make them available researchers. Moreover, we provide evid...

Reuters news reports have become an accepted tool for empirical studies analyzing informational asymmetries in FX markets. This paper tests the accuracy of the Reuters reports for Swiss interventions in the foreign exchange market. The evidence finds that the time stamp of the Reuters reports does not always lie near the recorded time of the first intervention trade as is commonly assumed in ma...

We develop a novel financial market model in which the stock markets of two countries are linked via and with the foreign exchange market. To be precise, there are domestic and foreign speculators in each of the two stock markets which rely either on linear technical or linear fundamental trading strategies to determine their orders. Since foreign stock market speculators require foreign curren...