UNITED STATES MACROECONOMIC VARIABLES IMPACT TOWARD FIVE MAJOR CURRENCIES EXCHANGE RATE: 2010-2016

Abstract

Purpose The purpose of this research paper is to identify the impact of United States macroeconomic variables, as the affecting factors, toward the five major currencies, and compare the impacts between the five major currencies. Methodology This research paper is a quantitative analysis which uses secondary data as its basis of analysis that is regressed through linear multiple regression. Classical assumption tests, T-Test, and F-Test are performed to figure out the significance of Advanced Retail Sales, Core Durable Goods Order, ISM Manufacturing PMI, and Unemployment Rate as the independent variables used toward Exchange Rate as the dependent variable for five major currencies. Findings The results show that the independent variables all together are significant toward exchange rate. However, individually, not all of them are significant toward the exchange rate depending on the selected currency. Originality/value Author believes that this is the first study trying to compare the impacts of United States Macroeconomic variables towards five major currencies (GBPUSD, USDJPY, EURUSD, AUDUSD, and USDCHF). This is also the first study to only take Advanced Retail Sales, Core Durable Goods Order, ISM Manufacturing PMI, and Unemployment Rate into account basing itself on forexfactory.com as the primary fundamental news of PT. Agrodana Futures.