Week 7 Discussion 1 Investment
Foreign Exchange Derivative Markets Please respond to the following two part discussion:
(Part 1) From the first e-Activity, speculate one specific area in which the next Triennial report may show a significant change. Explain how you arrived at your conclusion.
(e-Activity for Part I: Go to the Bank for International Settlements Website to read the results summarized in the article titled Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity in April 2010 Preliminary Global Results Turnover, dated September 2010, located at http://www.bis.org/publ/rpfx10.htm.
(Part II) Considering the U.S. Federal Reserve Board announced that U.S. interest rates will stay low through mid-2014, analyze how this will affect the foreign exchange derivatives market. Suggest whether or not you agree with this strategy. Provide support for your rationale.