Fundamental forecasters assume that if current exchange rates reflect all facts in the market, then under similar circumstances, future rates will follow the same patterns.

Question

Quizplus · Accepted Answer

Fundamental forecasters analyze economic indicators, interest rates, political conditions, and other factors to predict future currency movements, rather than assuming future rates will follow past patterns based on current exchange rates reflecting all facts.

Fundamental Forecasters Assume That If Current Exchange Rates Reflect All