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21 December, 03:52

Why would technical analysis to forecast future exchange rates be ineffective if all parity conditions prevailed? the only predictor would be the volatility of future exchange rates the unbiased predictor would not exist due to market trends the best predictor of future rates would be the forward rate the best predictor of future rates would be the current spot rates?

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  1. 21 December, 07:41
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    The technical analysis would be ineffective because The best predictor of future rates would be the forward rate.

    Forward rates will includes what the market might exppect for future bond interest rates or currency exchange rates while technical analysis mostly rely on the interest rates or currency at current time.
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