Which of the following forecasting techniques would best represent the use of relationships between economic factors and exchange rate movements to forecast the future exchange rate?
A) fundamental forecasting.
B) market-based forecasting.
C) technical forecasting.
D) mixed forecasting.

Question

Quizplus · Accepted Answer

Fundamental forecasting is based on the analysis of economic, financial, and other qualitative and quantitative factors that may impact exchange rate movements. This includes analyzing the relationships between economic indicators (such as inflation, interest rates, and GDP) and exchange rate movements to forecast future exchange rates. Market-based forecasting, on the other hand, focuses on analyzing market trends and patterns to forecast exchange rates. Technical forecasting involves analyzing charts and past price movements to identify patterns and forecast future exchange rates. Mixed forecasting combines elements of fundamental, market-based, and technical analysis.

Which of the Following Forecasting Techniques Would Best Represent the Use