Question: Below are the exchange rates E $/ and E $/ of the past few days. 1) Which currency has appreciated? What was the main cause

Below are the exchange rates E_$/ and E_$/ of the past few days. days. 1) Which currency has appreciated? What was the main cause of

1) Which currency has appreciated? What was the main cause of such a big rate movement?

2) Use your favorite exchange-rate theory to explain the exchange-rate movements. Write out the equations and/or draw the graphs. Explain in a few sentences.

Advanced Charting Euro (EUR/USD) 1.140 1.135 1.130 1.125 1.120 1.115 1.110 1.105 Feb. 18 Feb. 22 Feb. 24 U.K. Pound (GBP/USD) Advanced Charting 1.37 1.36 1.35 1.34 1.33 1.32 Feb. 18 Feb. 22 Feb. 24

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