JSAI2024

Presentation information

Poster Session

Poster session » Poster session

[3Xin2] Poster session 1

Thu. May 30, 2024 11:00 AM - 12:40 PM Room X (Event hall 1)

[3Xin2-24] Analysis of investment behavior of individual investors in the FX market: Influence of Beige Book information

〇Yoshihiko Ichikawa1, Moeko Asano1, Kaito Takano2, Kei Nakagawa2 (1.GMO Gaika, Inc., 2.Nomura Asset Management Co., Ltd.)

Keywords:foreign exchange market, Analysis of Investment Behavior, Retail Investors, text mining, Beige Book

In recent years, the increase in customer trading volumes at Japanese FX brokers has highlighted the significance of analyzing their customer trends.
Traditional finance research has focused on the stock market, analyzing volume changes after earnings or news announcements and the differences between individual and institutional investors.
However, the response of individual investors in the FX market, particularly to economic announcements, remains underexplored.
This study aims to examine individual investors' trading behaviors in response to the FOMC and Beige Book releases, assessing whether they trade based on the information (H1) and the tone of the Beige book information (H2).
Our findings confirm that the publication of the FOMC and Beige Book reports influences trading volume among individual investors. Additionally, we observe that individual investors react to specific topics mentioned in the Beige Book, which is released prior to the FOMC meeting.

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