A forecasting technique based on fundamental relationships between economic variables and exchange rates, such as inflation, is referred to as technical forecasting.

Question

Quizplus · Accepted Answer

A forecasting technique based on fundamental relationships between economic variables and exchange rates is referred to as fundamental forecasting, not technical forecasting. Technical forecasting relies on analysis of past market data and price movements to predict future trends.

A Forecasting Technique Based on Fundamental Relationships Between Economic Variables