Seven rules of foreign exchange

Forecasting any financial market is difficult, but in most there is a generally accepted framework of analysis. In bond and equity markets we may disagree on the value of the inputs, but there are generally accepted ways of calculating fair value. By contrast, there is no commonly accepted framework of analysis in the currency markets. Current exchange rate theories do not lead to a reliable set of rules for forecasters to follow - at least not over the time horizons that investors and exporters

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