Public information arrival and investor reaction during a period of institutional change: An episode of early years of a newly independent central bank

This study uses unique dataset from Reuters electronic brokerage platform for currency trading. * We investigate the reaction of FX market to the Polish central bank NBP announcements in 2000-2003. * NBP communication reduced the uncertainty, stabilized the market and increased trading activity. * We also found existence of possible wealth effects of the NBP central bank communication. Employing unique data derived directly from the Reuters electronic brokerage platform for currency trading, this paper investigates the reaction of investors to central bank announcements on the foreign exchange... Mehr ...