FX MARKET ANALYSIS AND TRADING STRATEGIES REPORT
FX MARKET ANALYSIS AND TRADING STRATEGIES REPORT
Aims of the report
The report aims to give students the skills necessary to apply their knowledge of finance to solve
issues faced by financial institutions participation in foreign exchange market.
For this assignment, you should concentrate on the course material covered in Topics 5A & 5B.
Do not use derivative products.
Foreign Exchange Treasury Dealing Report Task
You are part of a foreign exchange dealing team working for a large Australian bank. Your team
trades major Asian and world currencies (AUD, SGD, JPY, USD, EURO, GBP and HKD) and has
been asked by your senior manager to provide him with a report on the following:
1. An outline and explanation of your market view concerning the behaviour at least two
currency pairs (e.g. AUD/USD, USD/EURO, USD/JPY, etc.) over the next three to six
months.
2. An outline and explanation of what foreign exchange trading strategies you will
undertake, to achieve maximum profits for your bank, as a consequence of your market
view outlined in part 1. (You should include the bank’s role both as a price maker and as a
possible speculator). You must also look at you trading strategy as a price maker trading the
currency on a daily basis based on clients’ needs.
3. An outline and explanation of what risks and obstacles you might encounter in attempting to
implement your strategies.
Note that you should not use derivatives products, only spot currency.