State the reasons behind exchange rate overshooting.

Exchange rate overshooting occurs when the exchange rate of a currency deviates significantly from its long-run equilibrium level. There are several reasons why this can happen:

1. Expectations of future exchange rates: If market participants expect the exchange rate to change in the future, they may adjust their current trading decisions to reflect this. This can lead to overshooting in the short-term as the market tries to _______ _____ _____ _____ _________ _______ _______ ________ ____ ______ ______.
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