Overview

Your team works for a renowned FX trading company, Xhi-Trade. The company specializes in trading major currencies such as Australian dollar (AUD), United States dollar (USD), Japanese Yen (JPY), Euro (EUR) and Great British Pound (GBP). The company also trades various foreign exchange related derivatives for its clients. In addition, it provides general advice to other clients who trade for themselves. The firm's chief trading executive, Bill Harrison, has requested your team's expertise in trading foreign currencies in order to improve firm's trading strategy and profits. You have been asked to prepare a detailed report in this regard. In your report you must address the following questions:

Question 1

You have been asked to select one of the three market views developed by your group in stage 1 (AUD/JPY). Using this market view, devise a speculation strategy that enables your organisation to take advantage of your predicted changes in the exchange rates. You should specify which currencies you will buy or sell (at this stage JPY).As part of your strategy you must create a portfolio as of 24^th of April, 2020. This portfolio will comprise of the currency pair analysed in your market view.