oussama94
05-28-2017, 23:31
To clarify this further, suppose, for example, that the U.K. economy is
booming, and that its stock market is rallying as well. Meanwhile, in the
United States, a lackluster economy is creating a shortage of investment
opportunities. In such a scenario, the natural result would be for U.S. residents
to sell their dollars and buy British pounds to take advantage of the
rallying U.K. economy. This would result in ******* outflow from the United
States and ******* inflow for the United Kingdom. From an exchange rate
perspective, this would induce a fall in the USD coupled with a rise in the
GBP as demand for USD declines and demand for GBP increases; in other
words, the GBP/USD would rise
booming, and that its stock market is rallying as well. Meanwhile, in the
United States, a lackluster economy is creating a shortage of investment
opportunities. In such a scenario, the natural result would be for U.S. residents
to sell their dollars and buy British pounds to take advantage of the
rallying U.K. economy. This would result in ******* outflow from the United
States and ******* inflow for the United Kingdom. From an exchange rate
perspective, this would induce a fall in the USD coupled with a rise in the
GBP as demand for USD declines and demand for GBP increases; in other
words, the GBP/USD would rise