11 Foreign exchange market efficiency. Assume that foreign exchange markets were found to be weak-form efficient. What...

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11 Foreign exchange market efficiency. Assume that foreign exchange markets were found to be weak-form efficient. What does this suggest about utilizing technical analysis to speculate in euros? If MNCs believe that foreign exchange markets are strong-form efficient, why would they develop their own forecasts of future exchange rates? That is, why wouldn’t they simply use today’s quoted rates as indicators about future rates? After all, today’s quoted rates should reflect all relevant information.

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Exploring Economics

ISBN: 9780324395464

4th Edition

Authors: Robert L. Sexton

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