Hi, need to submit a 2500 words essay on the topic Foreign Exchange Markets.It is depicted that the broad categories on which the methods lie are. technical and fundamental analysis. These two are the

Hi, need to submit a 2500 words essay on the topic Foreign Exchange Markets.

It is depicted that the broad categories on which the methods lie are. technical and fundamental analysis. These two are the broad spectrum under which the smaller subdivisions occur. These two classifications have the same objective. tools of forecasting forex trade directions.

In this research one null hypothesis was. foreign exchange rate normally exhibit complex patterns which can be termed as non-linearity of the exchange rates, this pattern may be profitably exploited by the concerned parties.

There was a huge base of information to collect from, this required thorough analysis. The number of currencies in the world today is overwhelming which brings the comparison problems. Another challenge was the continuous fluctuation of the currencies in the market. The dollars normally fluctuate on different occasions hence the uncertainty.

According to the Oxford dictionary, linearity is the property of having one direction. The term is used to express the concept that the model poses properties of additivity and homogeneity. Change in one variable leads to a proportional change in another variable. Thus, linearity is the property of having dimensions of occurrence on more than one framework.

For reliability purposes, the data set is based on hourly observations of the US dollar and the Australian dollar, Turkish Lira and the Japanese Yen in 2014. From the hourly observations on these currencies, the daily results were recorded. The difference exhibited between the currencies was assessed and the direction of the currency was depicted. The data exhibited a number of relations which also aids decision making on currency forecasting. Some of the data was also collected from the secondary sources which emanated from different national archives.