Bilateral exchange rate report

You are required to produce a report, in two parts, on the bilateral exchange rate of your choice.

A) Briefly describe the movement in the bilateral exchange rate of your choice between January 1st 2019 and December 31st 2019 (e.g. EUR/USD or USD/CHF). A couple of sentences should be sufficient for this purpose.

B) Using any of the theories of exchange rate determination discussed in AC4904 (for example: international parity conditions), what would the predicted exchange rate changes have been over this period? Choose the frequency or frequencies you think appropriate (e.g. monthly, annually). If you wish you can use diagrams and/or tables to illustrate your answer.

C) Briefly outline the reasons why the theory or theories that you selected were (or were not) effective in forecasting your chosen bilateral exchange rate

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