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Original Articles

Do exchange-rate forecasters herd?

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Pages 739-741 | Published online: 25 Jan 2011
 

Abstract

We used the foreign-exchange-rate forecasts of the Wall Street Journal (WSJ) poll to analyse whether exchange-rate forecasters herd or anti-herd. Forecasters herd (anti-herd) if their forecasts are biased towards (away from) the consensus forecast. Upon implementing a robust empirical test developed by Bernhardt et al. (Citation2006), we found that forecasters of the yen/dollar and the dollar/euro exchange rates anti-herd.

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