Premium
DATA REVISION AND MARKET RESPONSE: THE CASE OF UNITED STATES TRADE BALANCE ANNOUNCEMENTS †
Author(s) -
Ghosh Sucharita,
Lien Donald
Publication year - 1995
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/j.1468-0084.1995.mp57002007.x
Subject(s) - balance of trade , balance (ability) , liberian dollar , economics , exchange rate , international economics , monetary economics , us dollar , finance , psychology , neuroscience
In this paper we study economic news, as reflected in the announcements of the United States trade balance by the Commerce department, to illustrate the importance of revised data versus preliminary data to economic agents. A new methodology has been developed here to study how agents in the exchange market respond to these monthly trade balance announcements and consequently, move the dollar's exchange rate. In contrast to previous studies where agent reactions to only preliminary trade figures were analyzed, this method is applied to examine market reactions to the preliminary and revised trade balance figures.