| Summary: | 碩士 === 國立中央大學 === 財務金融學系 === 103 === We analyze whether the event that exchange rates approach or break the 52-week highs and lows in the FX market have any effect on the volatility and volume patterns, and expect the anomalies will be consistent with the anchoring effect. The empirical study shows that volatilities decrease when the exchange rates approach the 52-week high 52-week low, but volumes don’t change significantly. Moreover, the response of volatilities to 52-week high and 52-week low vary with currencies. The anchoring effect does not have a significant influence on the FX trading. The data we use are collected through EBS trading system that is mainly used by traders in bank. Therefore, the empirical study implies that there is no anchoring effect in interbank market. The irrationality that appears in the stock market may result in the anchoring effect, leading behavioral bias in the investing decision. However, the irrationality does not exist in the FX interdealer market.
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