Answer Happy

STEP: 102 Nevada Co must pay 10 million Mexican pesos by tomorrow, in exchange for supplies that it has agreed to purchase from a supplier in Medico. The peso appreciated today against the dollar by 3 percent. Using time series dota of past currency fluctuations, Nevada observes whenever the peso appreciates against the dollar by more than 1 percent, there is a reversal whereby the peso then deprecates by 60 percent of that change on the following day Given the results of the technical ✓ forecasting by Nevada Co, the firm will most likely decide to make its payment tomorrow instead of today
STEP: 2 of 2 Assume that the foreign exchange market is weak-form efficient True or False: In this case, further technical forecasting will be useful in forecasting exchange rate movements. True False