Foreign Exchange Traders in Hong Kong, Tokyo, and Singapore: A Survey Study

Abstract

This study presents some findings from a survey of interbank foreign exchange traders in Hong Kong, Tokyo, and Singapore regarding some issues in exchange rate economics. Exchange rates are perceived to react to the unexpected component of macroeconomic news within the first minute of announcements. On labeling their trading methods, the traders' responses distribute quite evenly among strategies based on technical and fundamental considerations. Central banks are accused of exacerbating volatility via intervention. While more than one half of the traders suggest that interventions restore equilibrium and are conducted at the right time, they are divided on whether interventions achieve their goal. Our survey results also indicate that the responses depend on the market in which the trader is located, seniority, trading capacity, market share, and headquarters location.