Suppose people in the United Kingdom and the United States expect exceptional increases in value in the U.K. s?
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Suppose people in the United Kingdom and the United States expect exceptional increases in value in the U.K. stock market. Describe and illustrate what should happen to the USD/GBP exchange rate.
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Answer:
exchange rates are 99% controlled by day-trading hedgers.......so, rise in stock means strong economy of the country so more stable currency, so pick up .....this logic would make USD/GBP to rise.
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