• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library, DOAJ , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2014 Vol.5(4): 317-321 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2014.V5.390

The European Central Bank’s Minimum Bid Rate and Its Effect on Major Currency Pairs

Ikhlaas Gurrib
Abstract—The paper looks at the effects of Minimum Bid Rate on three major currency pairs namely the Australian dollar against the US dollar, the Euro against the US dollar, and the British Pound against the US dollar. The minimum bid rate is announced by the European Central Bank and is considered by traders to have a major impact on the financial markets. Both a one minute data interval and a five minute data interval is used over a time period of four years. Findings suggest the effects of the specific news under analysis to be insignificant for a trader to benefit from the fluctuations in the three major currency markets. The impact of the announcement tends to be more significant on the Euro/USD pair relative to the other two currency pairs both on the one minute and five minute analysis.

Index Terms—Currency pairs, European central bank, minimum bid rate.

Ikhlaas Gurrib is with the Canadian University of Dubai, Sheikh Zayed Road, PO Box 117781, Dubai, United Arab Emirates (e-mail: ikhlaas@cud.ac.ae).

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Cite: Ikhlaas Gurrib, "The European Central Bank’s Minimum Bid Rate and Its Effect on Major Currency Pairs," International Journal of Trade, Economics and Finance vol.5, no.4, pp. 317-321, 2014.

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