Fx forecast vs forward
Trading Forex and metal markets means that you are trying to beat automated software solutions and professionals on their home turf. It involves a lot of uncertainty and a lot of different variables need to be kept in mind. Fiat currency and metal markets have less volatility and set of data variables compared to the cryptocurrency markets, thus we are confident that we can manage to give you The PPP approach forecasts that the exchange rate will change to offset price changes due to inflation based on this underlying principle. To use the above example, suppose that prices of pencils in the U.S. are expected to increase by 4% over the next year while prices in Canada are expected to rise by only 2%. It is not a forecast of future spot prices. And that’s because there are other factors impacting futures prices in commodities than just market views. Namely: 1) Interest rates, storage costs and insurance — also known as the ‘cost of carry’. 2) Tightness in the physical market — also known as the ‘convenience yield’.