Pick any six Fed funds rate announcements (three of them have to be decrease in rates and
Question:
Pick any six Fed funds rate announcements (three of them have to be decrease in rates and three of them have to be increase in rates). Then, measure the impact of these six announcements on the value of dollar, separately. You can use the change in the value of dollar during the 14 days following the announcement. Submission should include: (i) Expectation for the effect of the announcement on dollar value (DXY) (ii) sources of data and period of observation; (iii) Table including actual $ return vs. choice of economic announcement(change in interest rate) (iv) Graph or regression table(s); (v) Interpretation of results and conclusions. Do you observe any differences in the reaction of $ to the increases and decreases in interest rates? Is it consistent with your expectations? If yes, why? Again, if no, why?
https://www.investing.com/economic-calendar/interest-rate-decision-168
https://www.investing.com/indices/usdollar-historical-data
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders