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Why Would Technical Analysis to Forecast Future Exchange Rates Be

Question 32

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Why would technical analysis to forecast future exchange rates be ineffective if all parity conditions prevailed?


A) The best predictor of future rates would be the current spot rates.
B) The only predictor would be the volatility of future exchange rates.
C) The best predictor of future rates would be the forward rate.
D) The unbiased predictor would not exist due to market trends.

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