Pre-Announcement Drift for BoE, BoJ, SNB: Do Markets Move Before the Word Is Out?
We’ve previously examined how central bank policy decisions—particularly those by the Federal Reserve and the European Central Bank (ECB)—impact stock market behavior. The price drift in U.S. equities around the Federal Open Market Committee (FOMC) meetings is a well-documented phenomenon. Likewise, our research study of the ECB revealed a pre-announcement drift, underscoring the anticipatory nature of equity markets ahead of key policy events and the potential opportunities for trading strategies. But are such price drifts unique to the Fed and ECB? In this article, we broaden the scope to investigate whether similar market behavior occurs around monetary policy announcements by other major central banks: mainly the Swiss National Bank (SNB), the Bank of England (BoE), and the Bank of Japan (BoJ).
