A.  ASSIGNMENT RECAP

• Write a 2500-word group report where your team is assigned roles as either a bank or corporation.
• Research 5 currencies, analyze past performance and forecast future movements, devise trading strategies, participate in a live simulation, evaluate their performance, and submit a report covering their analysis, strategies, and simulation outcomes.

Structure:

1. Executive summary (Suggested 100 words)
2. Introduction (Suggested 100 words)
3. Discussions about the 'market view'

• Past Performance Analysis (Suggested 500 words)
• Forecast Analysis (Suggested 500 words)

4. Explanation of the trading strategy

-        Pre-session preparation (Suggested 450 words)

-        In-session strategy (Suggested 250 words)

5. Performance analysis (Suggested 350 words)
6. Conclusion (Suggested 150 words)
7. References

B. KEYWORD EXPLANATIONS

1. Foreign exchange (FOREX) market - The global decentralized market where currencies are traded and exchange rates are determined. It facilitates international trade and investments.
2. Currency pairs - In the FOREX market, the relative value between two currencies is represented as a currency pair (e.g. EUR/USD). One is the base currency and the other is the quote currency.
3. Market behavior - Historical patterns and trends in currency pairs and exchange rates driven by macroeconomic conditions, investor expectations, and events. Evaluating past market behavior through technical analysis of price charts provides context for forecasting potential future movements.
4. Primary objectives - The main goals a bank or corporation aims to achieve through FOREX market trading strategies, such as maximizing trading revenue for a bank or minimizing transaction costs for an international investment project. The primary objectives shape the overall trading approach.
5. Secondary objectives - Additional, supplementary goals that also factor into a trading strategy but are subordinate to the primary objectives. For example, secondary goals could include managing risk exposure or diversifying currency exposure. These support the achievement of the central primary objectives.

C. DETAILED OUTLINE

1. Section 1: Executive summary or synopsis

• Introduction: Briefly state corporate role, currency pairs, objectives
• Market Analysis: Summarize research of historical data and economic forecasts
• TraExample:

a/ Corporation

• Introduction (1-2 sentences): This report summarizes the simulated FX trading performance for Corporation B's treasury team, assigned to minimize acquisition costs across EUR, GBP and USD for an international expansion project.
• Market Analysis (1-2 sentences): Extensive research of historical data and economic forecasts informed trading strategies and currency value projections.
• Trading Strategies (1-2 sentences):  

• Precise execution of triangular arbitrage and speculation tactics aimed to optimize primary acquisition costs and secondary profits.
• Meticulous communication and rate scouting helped achieve primary cost objectives.
• Secondary speculation generated supplementary gains by trading excess EUR and GBP for USD based on relative strength projections

• Recommendation (1 sentence):

• While projected cost savings were narrowly missed due to unexpected volatility, success executing complex multi-currency transactions provided valuable learning opportunities. Enhanced risk management and responsiveness will further improve future outcomes.

2. Section 2: Introduction

• State assigned role (1 sentence)
• List currency pairs researching (1 sentence)
• Identify primary objectives (1 sentence)
• Identify secondary objectives, if any (1 sentence)
• Overview report structure (1-2 sentences)

Example:

a/ Corporation

• Our team is acting as Corporation B, assigned to research EUR and GBP pairs to minimize acquisition costs for a planned project expansion.
• Our primary objective is sourcing 60 million EUR and 80 million GBP at the lowest viable exchange rates and transaction fees.
• Secondary objectives include generating supplemental revenue through speculation.
• This report outlines our market research, cost minimization strategies, simulated performance, and future improvement opportunities across 6 sections.

3. Section 3: Discussions about the 'market view'

1. Past Performance Analysis

For each chosen currency pair, apply the following structure:

• 10-12 sentences: Analyze historical spot rates over 2+ years