I am currently working on a project where I am looking at how prices are affected by changes in the exchange rates. For an example, I want to see how a change in my currency (Norwegian Kroner) affects our salesprice in foreign currency in places like France and Italy (in euros).
I want to find the effects the exchange rate have on the salesprice. Should I make a correlation matrix with (1) logarithm of first difference, (2) logarithm or (3) the normal salesprice in euro?
Thanks a lot.