Question: If the 1 year forward rate for USD / EUR is expected to be 1 . 2 4 0 0 , but the current 1
If the year forward rate for USDEUR isexpectedto be but the current year forward rate is what does this suggest about theexpectedmovement of the EUR relative to the USD?
Group of answer choices
The EUR is expected to strengthen vs the USD when compared to the market forward rate
The EUR is expected to weaken vs the USD when compared to the market forward rate
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