Introduction to Foreign Exchange

In addition to your class tuition and study materials, you will receive the following:


Exercises

• Course exercises

Class Discussions

• Discussion of current trends and issues within the FX Market

Other Extras

• Worked examples of hedge transactions
  
• Certificate of attendance

Level: Introductory


Synopsis:
With a daily turnover of some $4tn, the FX Market is the largest and one of the most exciting markets in world. We distinguish our "cable" from our "carry trade", get to grips with what really drives this 24 hour market and why it is central to everyday investment decisions.


At the end of the course participants will be able to: Understand how FX is quoted, how and why it is traded and who by . Understand the central importance of the management of FX risk for banks, institutions and corporates alike . Understand the basic tenets of technical analysis and economics driving FX rates .


Prerequisites:
None


Suitable For:
Any professional interested in the foundations of the FX market


Introduction

• Background, data features and participants of the FX Marker
• Bretton woods and the gold standard
• The role of the U.S.Dollar as the world's reserve currency -What about China?

Foreign exchange products and their uses

• Spot: quotation
• Cross rates
• Forwards, swaps and the importance of interest rate differentials
• Non-deliverable forwards (emerging markets)
• Using FX forwards and FX Swaps

Foreign exchange market drivers

• Short term trend drivers (technical) -What the charts tell you about sentiment / market psychology
• Long term trend drives (fundamental)
• From PPP to the carry trade - is it all over for USD/JPY?
• Is the recent resurgence of the Dollar sustainable?
• Will the destruction of the Pound continue unabated?