Focus On FX Forecasts

MARKET VOICE

Foreign Exchange Consensus Forecasts asked 50 forecasters in March which factors determine exchange rates. The results show relative economic growth now weighs more heavily on FX prices than traditional factors

The market’s focus on relative economic growth -- which did much to boost the dollar in the first three quarters of 2000 and is part of the reason behind its subsequent decline (see chart 3) -- is clearly reflected in the survey responses for several major currencies. These include the

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