—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.
—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:
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.