Exchange rates can experience sudden changes as well as long-run patterns. a. Plotthe daily U.S. dollar-British pound

Question:

Exchange rates can experience sudden changes as well as long-run patterns.

a. Plotthe daily U.S. dollar-British pound exchange rate (FRED code: DEXUSUK) for the first half of 2016 and identify the short-term spike. What caused this spike? Which currency is appreciating when the plotted exchange rate falls?

b. Plot since 1971 the monthly Japanese yen-U.S. dollar exchange rate (FRED code: EXJPUS) without recession bars.Which currency is appreciating when the plotted exchange rate falls?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

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