Understanding the foreign exchange market microstructure allows us to predict where exchange rates tend to go in the long-run.

Name: Understanding the foreign exchange market microstructure allows us to predict where exchange rates tend to go in the long-run.
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Question

Quizplus · Accepted Answer

Understanding the microstructure of the foreign exchange market helps in analyzing short-term price movements and liquidity but does not necessarily predict long-term exchange rate trends, which are influenced by broader economic factors.

Understanding the Foreign Exchange Market Microstructure Allows Us to Predict