5 Assume that the technical forecast has been more accurate than the market-based forecast in recent weeks. What does this indicate about market efficiency for the baht–pound exchange rate? Do you think this means that technical analysis will always be superior to other forecasting techniques in the future? Why or why not?

Recall that Blades plc the UK-based manufacturer of roller blades, is currently both exporting to and importing from Thailand. Ben Holt, Blades’ chief financial officer (CFO), and you, a financial analyst at Blades plc are reasonably happy with Blades’ current performance in Thailand. Entertainment Products, Inc., a Thai retailer for sporting goods, has committed itself to purchase a minimum number of Blades’ ‘Speedos’ annually.
The agreement will terminate after three years.
Blades also imports certain components needed to manufacture its products from Thailand. Both Blades’
imports and exports are denominated in Thai baht.
Because of these arrangements, Blades generates approximately 10% of its revenue and 4% of its cost of goods sold in Thailand.