[SWFloridaGuy] I see on Recaps they're saying that 6 out of the last 7 RVs happened on Fridays.
[SWFloridaGuy] I just wanted to clear up the persisting "RVs happen on Fridays rumor." In my opinion there is no basis for this rumor and my research shows it to be completely inaccurate. I noticed you didn't list the 6 revaluations you were referring to by name. A large currency appreciation event is when the nominal effective exchange rate is revalued by at least 10% or more relative to the previous average level and not only includes the one-time step revaluation, but also a number of smaller appreciation steps that happen within a short time window.
[SWFloridaGuy] Whether a country revalues on a trade-weighted basis as a consequence of the appreciation of the anchor currency, the demise of an old system (bretton woods), the exchange rate regime being changed towards a more market determined rate or if the central bank revalues the central parity of the currency, the one thing they all have in common is that they happened over a period of time which was determined by the details of the specific project and there is no predictable pattern
Read More Link on Right.
[SWFloridaGuy] For example: Algeria (1980-1982): The exchange rate of the Algerian dinar was pegged to a basket of currencies with a large USD weight. Dollar strength during the early 1980s led to a strong 17.2% appreciation of the dinar on a trade-weighted basis. Australia (1971-1973): The depreciation of the USD led to a 10.2% appreciation of the Australian dollar which was pegged to the British pound. Ireland (1979-1980): After joining the ERM in 1979 triggered a 12.9% trade weighted appreciation. Switzerland (1974-1976) etc. etc. etc.
[SWFloridaGuy] As you can see, large currency appreciation shocks have many different determining outside factors none of which distinguishes a particular day of the week. Appreciation episodes vary in definition and can be a single event or a period of growth that lasts up to several years. They definitely are not included in a Friday gift basket. Thanks for offering your opinion though and hope you have a great weekend.
[willietrader] SWFloridaGuy I think what makes this different with the IQD is were waiting for the IQD to become international traded again
[SWFloridaGuy] willietrader Right but my point is nothing points to a particular day of the week. This is one of those things repeated often enough in chat rooms eventually becomes fact.
SWFloridaGuy] willietrader She said 6 of the last 7 RVs happened on a Friday and that's just not the truth. They've been repeating this same rumor for years.
willietrader] SWFloridaGuy I agree no one day is over another. It seems friday would be a good day so all know before the bank opens on Monday, but if it makes sense- don't count on that to happen
[SWFloridaGuy] willietrader Yup