Part 1

Each of you is part of a team and is required to conduct independent research that will feed into your group report. This research consists of outlining and explaining the behavior of a self-selected pair of exchange rates over the past. You must exclusively choose from the currencies listed above and make sure each team member is studying a different currency pair.

In this task, you are required to do some research in order to form a view regarding current and future market conditions.

• Do you think that exchange rates will go up or down in the next 3 to 6 months?

• Why do you think this?

1. For this, you should first identify the economic factors that influence the foreign exchange rates (review the course materials). Then you should collect and use financial news and news regarding national and international events which are likely to have an impact on the market.

2. For news and market data, you can use any professional data sources such as professional magazines, institutional websites, and newspapers.

3. Do not simply quote other people’s opinions. You should present your opinion, and explain in your own words why you hold that opinion in a way that shows that you understand the theory behind the determination of the exchange rates. You can certainly quote evidence that supports your opinion, and this evidence must be correctly referenced. For your view, you should use at least five references.

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