Foreign Exchange Forecasting Can Be Either Long-Term, or Short-Term in Duration

question 12

Essay

Foreign exchange forecasting can be either long-term, or short-term in duration. Compare and contrast the motivation for and the techniques a forecaster might use for each of the time periods.

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Definitions:

Liquid

A state of matter characterized by a fixed volume but no fixed shape, with molecules that are closely packed but can move past each other.

Referent

The actual thing or entity in the world that a word, phrase, or symbol represents or refers to.

Amusement Park

A large outdoor area with fairground rides, shows, refreshments, and other entertainment activities.

Ocean

A vast body of salt water that covers almost three-quarters of the Earth's surface.