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The Influence of U.S. Presidential Elections on Exchange Rates Dr. Dean Frear Wilkes University Wilkes-Barre, Pennsylvania Dr. Jennifer Edmonds Wilkes University Wilkes-Barre, Pennsylvania
Introduction ,[object Object],[object Object],[object Object]
Research Question ,[object Object]
Exchange Rate Influence Background ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Literature Review ,[object Object],[object Object],[object Object],[object Object]
Methodology ,[object Object],[object Object],[object Object],[object Object],[object Object],Intentions for candidacy stated Adjustment period for ‘new’ presidential candidate Year 1 Year 2 Year 3 Year 4 conventions Primary elections
Data ,[object Object],[object Object],[object Object],[object Object],[object Object]
U.S. Presidential Election Timeline Intentions for candidacy stated Adjustment period for ‘new’ presidential candidate Year 1 Year 2 Year 3 Year 4 conventions Primary elections Daily observations of exchange rates
Data ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],(even more so in USD -> EUR)
[object Object],[object Object],[object Object],(even more so in USD -> EUR)
[object Object],[object Object],[object Object],(even more so in USD -> EUR)
Hypothesis Testing ,[object Object],[object Object],[object Object],[object Object],[object Object]
Hypothesis Testing ,[object Object],[object Object],[object Object],[object Object],[object Object]
Findings by Quarter ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Values shown are p-values from corresponding hypothesis tests. USD ->EUR (1999-2006) USD ->GBP (1987-2006) USD ->JPY (1987-2006) EY:  0.088 0.815 0.802 nEY:  0.384 0.109 0.736 0.418 + 0.442 0.669 0.052* 0.127 0.682 Q1:  0.827 0.970 0.606 Q2:  0.684 0.672 0.283 Q3:  0.174 0.009** ++ 0.625 Q4:  0.146 0.982 0.786
Findings by Quarter ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Values shown are p-values from corresponding hypothesis tests. USD ->EUR (1999-2006) USD ->GBP (1987-2006) USD ->JPY (1987-2006) EY:  0.088 0.815 0.802 nEY:  0.384 0.109 0.736 EY:  0.418 0.442 0.669 nEY:  0.052 0.127 0.682 Q1:  0.827 0.970 0.606 Q2:  0.684 0.672 0.283 Q3:  0.174 0.009** ++ 0.625 Q4:  0.146 0.982 0.786
Findings by Quarter ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Values shown are p-values from corresponding hypothesis tests. USD ->EUR (1999-2006) USD ->GBP (1987-2006) USD ->JPY (1987-2006) EY:  0.088 0.815 0.802 nEY:  0.384 0.109 0.736 EY:  0.418 0.442 0.669 nEY:  0.052 0.127 0.682 Q1:  0.827 0.970 0.606 Q2:  0.684 0.672 0.283 Q3:  0.174 0.009 0.625 Q4:  0.146 0.982 0.786
Findings by Week ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Values shown are p-values from corresponding hypothesis tests. USD ->EUR (1999-2006) USD ->GBP (1987-2006) USD ->JPY (1987-2006) EY:  0.006 0.300 0.496 nEY:  0.666 0.253 0.211 0.418 + 0.442 0.669 0.052* 0.127 0.682 Q1:  0.827 0.970 0.606 Q2:  0.684 0.672 0.283 Q3:  0.174 0.009** ++ 0.625 Q4:  0.146 0.982 0.786
Findings by Week ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Values shown are p-values from corresponding hypothesis tests. USD ->EUR (1999-2006) USD ->GBP (1987-2006) USD ->JPY (1987-2006) EY:  0.006 0.300 0.496 nEY:  0.666 0.253 0.211 EY:  0.006 0.775 0.771 nEY:  0.428 0.648 0.945 Q1:  0.827 0.970 0.606 Q2:  0.684 0.672 0.283 Q3:  0.174 0.009** ++ 0.625 Q4:  0.146 0.982 0.786
Findings by Week ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Values shown are p-values from corresponding hypothesis tests. The Presidential Cycle Year 1, week 3: Inauguration Year 4, weeks 5-25: Primary Elections Year 4, weeks 34-38: Political Conventions Year 4, week 46: Presidential Election USD ->EUR (1999-2006) USD ->GBP (1987-2006) USD ->JPY (1987-2006) EY:  0.088 0.815 0.802 nEY:  0.384 0.109 0.736 EY:  0.418 0.442 0.669 nEY:  0.052 0.127 0.682 Q1:  0.827 0.970 0.606 Q2:  0.684 0.672 0.283 Q3:  0.174 0.009 0.625 Q4:  0.146 0.982 0.786
The Presidential Cycle Year 1, week 3: Inauguration Year 4, weeks 5-25: Primary Elections* Year 4, weeks 34-38: Political Conventions Year 4, week 46: Presidential Election The values shown correspond to weeks in which there was a difference (between EYs and nEYs) of more than 0.15% *denotes significance at the 0.10 level
The Presidential Cycle Year 1, week 3: Inauguration Year 4, weeks 5-25: Primary Elections* Year 4, weeks 34-38: Political Conventions* Year 4, week 46: Presidential Election The values shown correspond to weeks in which there was a difference (between EYs and nEYs) of more than 0.15% *denotes significance at the 0.10 level
The Presidential Cycle Year 1, week 3: Inauguration Year 4, weeks 5-25: Primary Elections* Year 4, weeks 34-38: Political Conventions* Year 4, week 46: Presidential Election The values shown correspond to weeks in which there was a difference (between EYs and nEYs) of more than 0.15% *denotes significance at the 0.10 level
Conclusion ,[object Object]
Conclusion ,[object Object],[object Object],[object Object],[object Object],[object Object]
The End Thank You

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The influence of US presidential elections on exchange rates

  • 1. The Influence of U.S. Presidential Elections on Exchange Rates Dr. Dean Frear Wilkes University Wilkes-Barre, Pennsylvania Dr. Jennifer Edmonds Wilkes University Wilkes-Barre, Pennsylvania
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. U.S. Presidential Election Timeline Intentions for candidacy stated Adjustment period for ‘new’ presidential candidate Year 1 Year 2 Year 3 Year 4 conventions Primary elections Daily observations of exchange rates
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24. The Presidential Cycle Year 1, week 3: Inauguration Year 4, weeks 5-25: Primary Elections* Year 4, weeks 34-38: Political Conventions Year 4, week 46: Presidential Election The values shown correspond to weeks in which there was a difference (between EYs and nEYs) of more than 0.15% *denotes significance at the 0.10 level
  • 25. The Presidential Cycle Year 1, week 3: Inauguration Year 4, weeks 5-25: Primary Elections* Year 4, weeks 34-38: Political Conventions* Year 4, week 46: Presidential Election The values shown correspond to weeks in which there was a difference (between EYs and nEYs) of more than 0.15% *denotes significance at the 0.10 level
  • 26. The Presidential Cycle Year 1, week 3: Inauguration Year 4, weeks 5-25: Primary Elections* Year 4, weeks 34-38: Political Conventions* Year 4, week 46: Presidential Election The values shown correspond to weeks in which there was a difference (between EYs and nEYs) of more than 0.15% *denotes significance at the 0.10 level
  • 27.
  • 28.