Currency Management Strategy Evaluation

A multinational corporation (MNC) based in the United States has significant exposure to the Euro (EUR) due to its operations in Europe. The finance team is currently evaluating its currency management strategy amidst fluctuating exchange rates. The team is considering two distinct approaches: a strategic approach that focuses on long-term currency trends and a tactical approach that seeks to capitalize on short-term movements in currency rates.

The MNC's financial analyst proposes that a tactical approach would enable the company to better manage its cash flows by making frequent adjustments based on current market conditions. Conversely, another team member argues that a strategic approach would offer a more stable and predictable long-term outlook, reducing the risks associated with currency volatility.

Given this context, which currency management strategy is characterized by taking positions that capitalize on short-term fluctuations in exchange rates, aiming to achieve gains through active management?