Research has shown that past exchange rates are an accurate predictor of future exchange rates ________.

Question

Quizplus · Accepted Answer

Research indicates that past exchange rates are not reliable predictors of future exchange rates in the long term due to the market's inherent unpredictability and the influence of myriad unpredictable factors. However, in the very short run, due to inertia and the slow reaction of markets to new information, past exchange rates can sometimes provide a rough guide.

Research Has Shown That Past Exchange Rates Are an Accurate