BUS 4243: International Trade and Finance Assessment # 3 Currency Tracking Project (30%) Fall 2015 Final Report Submission Due: Sunday, April 30, 2017. Project Goal: The lecture component of the International Trade and Finance class introduces the students to a number of concepts regarding balance of payments and currency movements. The depth of understanding and applying the theories and concepts requires a practical work in the foreign exchange market. Thus, the goal of this project is to enable students to examine and perform actual practice of the entire process of: 1. Currency Tracking 2. Analysis of movements in exchange rates 3. Identifying factors affecting exchange rate movements 4. Evaluating impact of economic, and non-economic factors on exchange rates. 5. Long run behavior of the selected currencies During the course of this project, you will track the currencies of four countries against the US Dollar, conduct all the analysis underlying the movements in currency exchange rates and evaluate the impact of various factors affecting exchange rates in the short run (one weeks of daily analysis). Also you will report the long run behavior of the currencies by examining historical data ranging from 10 to 15 years. At the end of the period, your team will be required to turn in a professionally prepared report that documents your currency tracking activities over the course of the one week and the long run behavior of your currencies over the last 10 to 15 years. This will also record how professional a job you have done over the period, and the lessons you have learnt from the project. Grading Components: Four components will go into the determination of your grade on this project: 1. Documentation of on-going analysis and evaluation of the currency portfolio throughout the period together with a final summary, analysis, and evaluation of your portfolio’s performance as of the end of the period – 5% 2. Meeting the Essential Requirements of the Report (List attached)- 5 % 3. Overall organization and presentation of the Report. (Assessment criteria attached)- 10% 4. Project Presentation at the end of the term (Assessment criteria attached)- 10%   Requirements (Project Tasks): 1. Each group of four students has been assigned 4 major currencies. You will track the exchange rates for each of these foreign currencies against the USD. 2. Use a reliable FOREX website to record forex rates at the close of business for the period of study to Record the FOREX rates at the close of business in New York every working day. 3. You may use EXCEL to store data and produce charts that show: • Overall periodical movements in the FOUR FOREX Rates and the US Dollar • Any relevant comparisons in the charts of the other FOREX rates. 4. Prepare a report that includes the following essential requirements: a) Introduction b) Describe the currency exchange arrangement for the currencies tracked. c) Describe the daily movements in each of the exchange rates. Include Table of “closing rates” and full “chart” for the period. (Provide scree print) d) Indicate- Start, End, High and Low- for the period (Provide scree print) e) Review the movements of each currency against the USD and indicate which of the four currencies has become stronger or weaker over the period. f) Highlight the main events and activities in the world’s FOREX market during the period. (minimum of 2 articles for each currency tracked) g) Explain the impact of these events on each of the currencies you are tracking. h) Summary and Conclusion 5. Give a final Presentation in week 15 Sunday 30th April. 6. Hand in your completed final report a hard copy with all attachments. 7. Note that the quality of the overall report and NOT the quantity is important. For reference – details on currency codes: http://www.xe.com/iso4217.php#section2 or http://www.xe.com/iso4217.php Student Name: Student ID 1. Introduction (20%)  A concise introduction of the foreign exchange market  A short description of online currency trading  Objectives of the project are clearly stated All points discussed to an excellent standard 4.5 - 5 Points discussed to a very good standard 4 – 4.4 Discussion satisfactory standard 3 – 3.9 Did not meet criteria 2 – 2.9 Comments: 2. Discussion and Analysis (60%) 2.1 Week one trading review (12%)  Review of the performance of the currencies  Impact of Balance of payment/macroeconomic/political factors on the currencies  Use of supporting evidences and articles All points discussed to an excellent standard 4.5 - 5 Points discussed to a very good standard 4 – 4.4 Discussion satisfactory standard 3 – 3.9 Did not meet criteria 2 – 2.9 Comments 2.2 Round two trading review (12%)  Review of the performance of the currencies  Impact of Balance of payment/macroeconomic/political factors on the currencies  Use of supporting evidences and articles All points discussed to an excellent standard 4.5 - 5 Points discussed to a very good standard 4 – 4.4 Discussion satisfactory standard 3 – 3.9 Did not meet criteria 2 – 2.9 Comments 2.3 Round three trading review (12%)  Review of the performance of the currencies  Impact of Balance of payment/macroeconomic/political factors on the currencies  Use of supporting evidences and articles All points discussed to an excellent standard 4.5 - 5 Points discussed to a very good standard 4 – 4.4 Discussion satisfactory standard 3 – 3.9 Did not meet criteria 2 – 2.9 2.4 Round four trading review (12%)  Review of the performance of the currencies  Impact of Balance of payment/macroeconomic/political factors on the currencies  Use of supporting evidences and articles All points discussed to an excellent standard 4.5 - 5 Points discussed to a very good standard 4 – 4.4 Discussion satisfactory standard 3 – 3.9 Did not meet criteria 2 – 2.9 2.5 Round five trading review (12%)  Review of the performance of the currencies  Impact of Balance of payment/macroeconomic/political factors on the currencies  Use of supporting evidences and articles All points discussed to an excellent standard 4.5 - 5 Points discussed to a very good standard 4 – 4.4 Discussion satisfactory standard 3 – 3.9 Did not meet criteria 2 – 2.9 Comments: 3. Conclusion and Recommendation (10%)  The link between the online currency trading and the theoretical foundation of exchange rate movements.  A brief discussion of the role and significance of Balance of payment/macroeconomic and political conditions in the movement of currency prices  Recommendations All points discussed to an excellent standard 4.5 - 5 Discussion satisfactory standard 3 – 3.9 Discussion satisfactory standard 3 – 3.9 Did not meet criteria 2 – 2.9 Comments 4. Writing Style (10%)  Used appropriate language and vocabulary of the forex market  Clarity of descriptions and analysis  Accuracy in grammar and spelling All criteria met to an excellent standard 4.5 - 5 All criteria met to a satisfactory standard 3 – 3.9 All criteria met to a satisfactory standard 3 – 3.9 Did not meet criteria 2 – 2.9 Comments