Comments on: Canadian Dollar and Parity http://www.forexblog.org/2010/04/canadian-dollar-and-parity.html Learn about the world of Forex Thu, 01 Dec 2011 12:35:31 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Marcus http://www.forexblog.org/2010/04/canadian-dollar-and-parity.html#comment-6189 Marcus Wed, 28 Apr 2010 18:47:10 +0000 http://www.forexblog.org/?p=2616#comment-6189 Hi, why do you speak of the futures market "projecting" or forecasting an exchange rate? Isn´t future´s pricing based on a simple arbitrage relationship involving interest rate differentials? What I mean is, it seems as though you speak of futures conveying a certain market expectation. Is this valid? Thanks Marcus Hi,

why do you speak of the futures market “projecting” or forecasting an exchange rate?
Isn´t future´s pricing based on a simple arbitrage relationship involving interest rate differentials?
What I mean is, it seems as though you speak of futures conveying a certain market expectation. Is this valid?

Thanks
Marcus

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