Professional Documents
Culture Documents
Global Forex Trading - Guide To Currency Trading
Uploaded by
NoybOriginal Description:
Original Title
Copyright
Available Formats
Share this document
Did you find this document useful?
Is this content inappropriate?
Report this DocumentCopyright:
Available Formats
Global Forex Trading - Guide To Currency Trading
Uploaded by
NoybCopyright:
Available Formats
'5)$% 4/
#522%.#9 42!$).'
FROM 'LOBAL &OREX 4RADING
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE 4ABLE OF #ONTENTS
).42/$5#4)/. )6
&OREX! &INANCIAL -ARKET "UILT ON )NNOVATION 6
"RIEF (ISTORY OF &OREX 6)
4ODAYS &OREX 6))
4RADING &OREX 6)))
(ISTORY OF 'LOBAL &OREX 4RADING )8
$%6%,/0%$ #/5.42)%3
!USTRALIA
3POT
%CONOMIC /VERVIEW
-ONETARY &ISCAL 0OLICY
)MPORTANT #HARACTERISTICS OF THE !USTRALIAN $OLLAR
#ANADA
3POT
%CONOMIC /VERVIEW
-ONETARY &ISCAL 0OLICY
)MPORTANT #HARACTERISTICS OF THE #ANADIAN $OLLAR
)MPORTANT %CONOMIC )NDICATORS &OR #ANADA
%UROPEAN 5NION
3POT
%CONOMIC /VERVIEW
-ONETARY &ISCAL 0OLICY
4HE %-5 #RITERIA
)MPORTANT #HARACTERISTICS OF THE %URO
'REAT "RITAIN
3POT
%CONOMIC /VERVIEW
5+S &IVE %CONOMIC 4ESTS &OR %URO
-ONETARY &ISCAL 0OLICY
)MPORTANT #HARACTERISTICS OF THE "RITISH 0OUND
%URO
3TERLING &UTURES #AN 'IVE )NDICATIONS &OR )NTEREST 2ATE -OVEMENTS
#OMMENTS "Y 5+ 0OLITICIANS 7ILL !FFECT 4HE %URO
'"0 (AS 0OSITIVE #ORRELATION 7ITH %NERGY 0RICES
'"0 #ROSSES n %52'"0 6ERSUS '"053$
)MPORTANT %CONOMIC )NDICATORS &OR 4HE 5+
*APAN
3POT
%CONOMIC /VERVIEW
*APANESE "ANKING #RISIS
-ONETARY &ISCAL 0OLICY
)MPORTANT #HARACTERISTICS OF THE *APANESE 9EN
)MPORTANT %CONOMIC )NDICATORS &OR *APAN
.EW :EALAND
3POT
%CONOMIC /VERVIEW
-ONETARY &ISCAL 0OLICY
)MPORTANT #HARACTERISTICS OF THE .EW :EALAND $OLLAR
0OPULATION -IGRATION
)MPORTANT %CONOMIC )NDICATORS FOR .EW :EALAND
'& 4
#/ .4!#4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE 4ABLE OF #ONTENTS CONTINUED
3WITZERLAND
3POT
%CONOMIC /VERVIEW
-ONETARY &ISCAL /VERVIEW
)MPORTANT #HARACTERISTICS OF THE 3WISS &RANC
)MPORTANT %CONOMIC )NDICATORS &OR 3WITZERLAND
5NITED 3TATES
3POT
%CONOMIC /VERVIEW
-ONETARY &ISCAL 0OLICY
)MPORTANT #HARACTERISTICS OF THE 53 $OLLAR
)MPORTANT %CONOMIC )NDICATORS &OR 4HE 53
%-%2').' #/5.42)%3
#HINA
3POT
#ZECH 2EPUBLIC
3POT
(ONG +ONG
3POT
(UNGARY
3POT
)NDIA
3POT
+OREA
3POT
-EXICO
3POT
0OLAND
3POT
3INGAPORE
3POT
3OUTH !FRICA
3POT
4HAILAND
3POT
4URKEY
3POT
'& 4
# /. 4! # 4
(-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
'UIDE TO #URRENCY 4RADING
FROM 'LOBAL &OREX 4RADING
4HIS GUIDE IS WRITTEN FOR BOTH PEOPLE WHO ARE NEW TO FOREX TRADING AS WELL AS THOSE WHO HAVE EXPERIENCE WITH TRADING IN THE FOREX
MARKET 7RITTEN EXCLUSIVELY FOR TRADERS BY OUR PROFESSIONAL FOREX DEALING STAFF THE 'UIDE TO #URRENCY 4RADING PROVIDES AN ESSEN
TIAL OVERVIEW OF THE SPOT FOREX MARKET IN ONE EASYnTOnREAD DOCUMENT 4HE 'UIDE TO #URRENCY 4RADING IS ASSEMBLED WITH ESSEN
TIALS FOR DEVELOPED AND EMERGING COUNTRIES CURRENCIES
)T IS OUR HOPE THAT THIS GUIDE WILL PROVIDE YOU WITH THE INFORMATION NECESSARY TO STUDY THE FUNDAMENTAL INFLUENCERS THAT POWER THE
FOREX MARKET 4HESE COMPRISE CONCRETE FACTS ABOUT EACH COUNTRYS RESPECTIVE CURRENCY AS WELL AS IMPORTANT CHARACTERISTICS AND
ECONOMIC INDICATORS THAT PRESSURE FOREIGN EXCHANGE RATES ,EARN THE PARTICULARS ABOUT EACH COUNTRIES MONETARY AND FISCAL
POLICY THEIR ECONOMIC WORKINGS AND WHEN GOVERNMENTAL ANNOUNCEMENTS OR EVENTS OCCUR
4HE PUBLICATION BEGINS WITH A FEW BASIC FACTS ABOUT THE TREND OF FOREX TRADING ITS HISTORY AND SEVERAL TIDBITS ABOUT 'LOBAL &OREX
4RADING 3INCE '&4 HAS BEEN HELPING TRADERS MOVE AHEAD IN THE SPOT FOREX MARKET 7ITH THE INTRODUCTION OF ITS $EAL"OOK§
&8 TRADING SOFTWARE IN '&4 HAS GROWN INTO A WORLDnLEADING FUTURES COMMISSION MERCHANT AND PRIMARY MARKETnMAKER IN
THE SPOT FOREX MARKET
)6
'& 4
# /. 4!# 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREX! &INANCIAL -ARKET "UILT ON )NNOVATION
. O MATTER THE STATE OF THE 53 $OLLAR MORE AND MORE SPECULATORS ACROSS THE GLOBE ARE TRADING THE WORLDS CURRENCIES
INSTEAD OF IN TRADITIONAL MARKETS SUCH AS EQUITIES FUTURES OR OPTIONS &OREXTHE FOREIGN EXCHANGE OR GLOBAL CURRENCY MARKET
IS ONE OF THE FASTEST GROWING SECTORS OF THE FINANCIAL MARKETPLACE FOR RETAIL TRADERS ACCORDING TO 3TOCKS &UTURES AND /PTIONS
-AGAZINE
4RADING THE $OLLAR THE %URO *APANESE 9EN OR A VARIETY OF OTHER CURRENCIES WHICH PREVIOUSLY WAS DONE ONLY BY LARGE
BANKS OR A SELECT GROUP OF SOPHISTICATED INDIVIDUALS CAN NOW BE DONE FROM A PERSONAL COMPUTER OR PERSONAL DIGITAL ASSISTANT
0$! AS EASILY AS TRADING A SHARE OR TWO OF -ICROSOFT§ 7ITH AN ESTIMATED TRILLION 53$ TRADED DAILY TRADING FOREX IS NOW
AVAILABLE FOR INDIVIDUALSCOMMONLY REFERRED TO AS RETAIL FOREX 5NTIL THE ARRIVAL OF THE )NTERNET AND FOREX SOFTWARE THE AVERAGE
INVESTOR COULDNT PARTICIPATE IN FOREX TRADING
4HE RISING NUMBER OF PEOPLE TRADING RETAIL FOREX CAN BE CREDITED TO THE ARRIVAL OF HIGH
SPEED )NTERNET CONNECTIONS AND
MORE COMPANIES BUILDING TRADING SOFTWARE TO ACCESS FOREX )N THE PAST THE ONLY WAY TO GAIN ACCESS TO THE FOREX MARKET WAS
THROUGH BANKS THAT TRANSACTED LARGE AMOUNTS OF CURRENCIES FOR COMMERCIAL AND INVESTMENT PURPOSES IN THE INTERBANK MARKET
MAKING IT UNAVAILABLE TO MOST INDIVIDUALS
.EW GENERATIONS OF HIGHnTECH BROKERAGE FIRMS ARE COMPETING FOR CUSTOMERS BUT ONLY A FEW ARE BUILDING HIGHLY
ADVANCED TRADING PLATFORMS THAT POWER THE TOOLS NEEDED TO KEEP UP WITH THE FASTnPACED FOREX MARKET 'LOBAL &OREX 4RADING AN
!DA -ICHnBASED COMPANY THATS RISEN AS A WORLDnLEADER IN ONLINE FOREX TRADING HAS PRODUCED ONE OF THE MOST ADVANCED
TRADING PLATFORMS FOR FOREX TO DATE
&OUNDED IN AS A CUSTOMERnSERVICETECHNOLOGYnMINDED COMPANY '&4S PROPRIETARY TRADING SOFTWARE PLATFORM
FOR FOREX TRADERS CALLED $EAL"OOK§ &8 WAS INTRODUCED IN )N ADDITION TO WINNING SEVERAL INDUSTRY AWARDS $EAL"OOK§ &8
HELPED TO PROPEL '&4 INTO A WORLDnLEADER OF ONLINE FOREX TRADING BY THE END OF
"UNDLED INTO ONE SOFTWARE APPLICATION THE h&8v SOFTWARE TRANSMITS RESOURCES SUCH AS REALnTIME TRADABLE CURRENCY
PRICES REALnTIME PRICE CHARTING TECHNICAL INDICATORS AND UPnTOnTHEnMINUTE WORLD AND FINANCIAL NEWS )N '&4 INTRODUCED
A SECOND GENERATION OF ITS INDUSTRY RESPECTED SOFTWARE $EAL"OOK§ &8 IN ADDITION TO $EAL"OOK§ &8 -OBILE A FULLnFEATURED
FOREX TRADING APPLICATION FOR POCKET PC USERSFURTHER EVOLVING ACCESS TO THE FOREX MARKET
&OREX TRADERS WHO USE '&4S SOFTWARE GAIN ACCESS TO THE SAME TYPES OF RESOURCES EMPLOYED BY TOP TRADERS THROUGH
OUT THE WORLD 3EVEN YEARS AFTER ITS FOUNDING '&4 SYMBOLIZES ONE THE MOST RESPECTED FOREX TRADING FIRMS IN THE FOREIGN
EXCHANGE INDUSTRY WITH CLIENTS AND GLOBAL PARTNERS IN COUNTRIES WORLDWIDE "UT CREDIBILITY AND INTEGRITY CONTINUE TO BE THE
BASIS OF ALL '&4S RELATIONSHIPS EMPLOYEES AND PARTNERS
4HE COMPANY REQUIRES THAT ITS PARTNERS REFERRING PARTIES PASS THROUGH STRINGENT BACKGROUND CHECKS SOMETHING THAT
IS NOT REQUIRED BUT IS DONE BY '&4 TO ENSURE THE INTEGRITY OF ITS PARTNERS )N ADDITION ALL OF '&4S SALES TEAM AND DEALERS ARE
LICENSED FOREX SPECIALISTS THROUGH THE #OMMODITY &UTURES 4RADING #OMMISSION THE GOVERNMENT AGENCY THAT REGULATES FUTURES
AND OPTIONS MARKETS IN THE 53
6
'& 4
# /. 4!# 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
"RIEF (ISTORY OF &OREX
S OME FORM OF CURRENCY HAS BEEN AROUND SINCE THE TIME OF THE PHARAOHS BUT THE FOREIGN EXCHANGE MARKET FOREX AS
WE KNOW IT TODAY ORIGINATED IN 3EVERAL MAJOR CHANGES PRIOR TO THIS TIME GAVE WAY TO THE MODERN DAY FOREX ENVIRONMENT
4HE 'REAT $EPRESSION ALONG WITH THE REMOVAL OF THE GOLD STANDARD PROVIDED THE FIRST MAJOR TRANSFORMATIONS FOR FOREX
!FTER THE 53 DOLLAR DECREASED IN VALUE MOST OF THE WORLDS CURRENCIES WERE COMPARED TO THE STABLE "RITISH POUND UNTIL AFTER
77) WHEN THE "RITISH ECONOMY WAS IN RUINS
!NOTHER KEY TRANSFORMATION FOR FOREX OCCURRED WHEN THE "RETTON 7OODS !CCORD WAS FORMED BY THE 53 'REAT "RITAIN
AND &RANCE 4HESE COUNTRIES MET AT THE 5NITED .ATIONS -ONETARY AND &INANCIAL #ONFERENCE IN "RETTON 7OODS .( TO DESIGN
A MORE STABLE GLOBAL FINANCIAL SYSTEM 4HE AGREEMENT FORMULATED THE IDEA OF hPEGGINGv CURRENCIES AND CREATED THE )NTERNA
TIONAL -ONETARY &UND TO HELP STABILIZE THE GLOBAL ECONOMY
&OR THE FIRST TIME IN HISTORY MAJOR CURRENCIES WERE PEGGED AGAINST THE 53 DOLLAR AND ALLOWED TO FLUCTUATE FROM A SET
STANDARD &OR EXAMPLE WHEN AN EXCHANGE RATE APPROACHED THE LIMIT ON EITHER SIDE OF THE STANDARD THE RESPECTIVE COUNTRIES
CENTRAL BANK WOULD INTERVENE TO BRING THE EXCHANGE RATE BACK INTO AN ACCEPTED RANGE
4HE "RETTON 7OODS !CCORD ULTIMATELY FAILED ALONG WITH SUBSEQUENT AGREEMENTS TO STABILIZE GLOBAL CURRENCIES BUT DID
ESTABLISH STRENGTH FOR %UROPE AND *APAN )N THE CURRENT FREEnFLOATING SYSTEM BEGAN BUT WASNT OFFICIALLY MANDATED UNTIL
4HE FREEnFLOATING STRUCTURE WAS THE BEGINNING OF THE CURRENT FOREIGN EXCHANGE MARKET
0RESENTLY FOREX IS INFLUENCED BY THE ' AN INTERNATIONAL ORGANIZATION ESTABLISHED IN TO FACILITATE ECONOMIC
COOPERATION AMONG THE WORLDgS LARGEST INDUSTRIAL NATIONS -EMBERS OF THE ' DISCUSS AND COORDINATE ACTIONS ON ECONOMIC AND
COMMERCIAL MATTERS THAT SOMETIMES RESULT IN THE MOVEMENT OF FOREX MARKETS
&OREIGN EXCHANGE EXISTS SO PEOPLE COMPANIES AND GOVERNMENT ENTITIES CAN PAY FOR GOODS AND SERVICES )T IS ALSO
USED BY IMPORTERS AND EXPORTERS INTERNATIONAL PORTFOLIO MANAGERS MULTINATIONAL CORPORATIONS SPECULATORS DAYTRADERS LONG
TERM HOLDERS AND HEDGE FUNDS
6)
'& 4
# /. 4!# 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
4ODAYS &OREX
& OREX IS THE LARGEST MARKET IN THE WORLD WITH AN AVERAGE OF TRILLION 53 DOLLARS TRADED DAILY THATS DRIVEN BY THE
SUPPLY AND DEMAND OF CURRENCIES 4HE VOLUME OF FOREX CAUSES SIGNIFICANT LIQUIDITY WHICH MEANS ITS LESS INFLUENCED BY LARGE
BUY AND SELL ORDERS THAT CAN CAUSE UNWARRANTED PRICE MANIPULATION 4HIS MEANS A PERSON OR A COMPANY CANT ENTER THE MARKET
TO INFLUENCE IT BASED STRICTLY OFF REPUTATION OR THE VOLUME OF A TRANSACTION
)N THE PAST THE ONLY WAY TO GAIN ACCESS TO THE FOREX MARKET WAS THROUGH BANKS THAT MOVED LARGE AMOUNTS OF CURREN
CIES FOR COMMERCIAL AND INVESTMENT PURPOSES KNOWN AS THE INTERBANK MARKET MAKING IT UNAVAILABLE TO ALL BUT THE WEALTHIEST
INDIVIDUALS )N ADDITION TO THE BUYING AND SELLING OF FOREIGN CURRENCIES INTERBANK MARKET BANKS COMPETE WITH EACH OTHER FOR
CORPORATE CUSTOMERS MOST OF WHICH SEEK TO CAPITALIZE ON THE BEST EXCHANGE RATES POSSIBLE HEDGING
/NE OF THE LARGEST INFLUENCERS OF THE INTERBANK MARKET ARE THE WORLDS CENTRAL BANKS #ENTRAL BANKS ARE THE PRINCIPLE
GOVERNMENTnRUN BANKS OF THE MAJOR COUNTRIES OF THE WORLD SUCH AS THE 5NITED 3TATES &EDERAL 2ESERVE "ANK OR *APANS "ANK
OF *APAN 4HESE CENTRAL BANKS OFTEN INTERVENE IN THE FOREX MARKET TO CARRY OUT THEIR COUNTRIES MONETARY POLICY !T TIMES CENTRAL
BANK ACTIVITY CAN BE EXTREMELY DISRUPTIVE TO CURRENCY MARKETS AS GOVERNMENTS MANEUVER TO CHANGE THE LEVEL OF THEIR CURRENCY
RATES 4HESE INTERVENTIONS CAN OFTEN CREATE GREAT OPPORTUNITY AS WELL AS RISK FOR SPECULATORS
4HIRD
PARTY BROKERAGE FIRMS CALLED PRIMARY MARKETnMAKERS PROVIDE ANOTHER COMPONENT OF THE FOREX MARKET 4HESE
FIRMS REMAIN ON THE OUTER PERIMETER OF THE INTERBANK MARKET BUYING AND SELLING CURRENCIES FROM MULTIPLE BANKS MAKING THEM VERY
APPEALING TO INDIVIDUAL SPECULATORS BECAUSE OF THE PRICES THEY QUOTE )NTERBANK PRICES SOMETIMES HAVE LARGE PRICE GAPS BUT
MARKETnMAKERS ASSUME THIS RISK TO GIVE CONSISTENT COMPETITIVE PRICING TO INDIVIDUALS AT A RETAIL LEVEL
0RIMARY MARKETnMAKERS OFFER PRICES BASED ON INTERBANK PRICES TO MAKE CURRENCY TRADING AVAILABLE TO INDIVIDUALS TO
TRADE 4HESE ARE BASED UPON THE EXCHANGE RATES AS THEY ARE QUOTED BY BANKS TO EACH OTHER &URTHERMORE PRIMARY MARKET
MAKERS PROVIDE A TWOnSIDED MARKET AND ADD OVERALL LIQUIDITY TO THE FOREX MARKET
"ECAUSE FOREX TRADING IS NOT CENTRALIZED ON AN EXCHANGE AS WITH THE STOCK AND FUTURES MARKETS ITS CONSIDERED AN
OVERnTHEnCOUNTER /4# MARKET -OST FOREX TRANSACTIONS ARE CONDUCTED BETWEEN TWO PARTIES VIA A TELEPHONE OR THE )NTERNET
,IKE OTHER FINANCIAL INSTRUMENTS FOREX FIRMS MAKE A SMALL PROFIT FROM THE DIFFERENCES BETWEEN THE BUY AND SELL PRICES THUS
OFFERING COMMISSIONnFREE TRADING
-OST FOREX TRADING FIRMS MAKE THIRDnPARTY SOFTWARE AVAILABLE TO TRADERS WHILE OTHERS DEVELOP THEIR OWN PROPRIETARY
TRADING SOFTWARE 2EALnTIME CURRENCY PRICES AND DATA ARE FED INTO THE SOFTWARE VIA A DEALING DESK SO TRADERS CAN MAKE DECISIONS
OR PREDICTIONS IN AN EFFORT TO MAKE A PROFIT 3OME OF THE MOST ADVANCED FOREX TRADING SOFTWARE TODAY INCLUDES REALnTIME CHARTING
TECHNICAL INDICATORS AND UP
TO
THE
MINUTE NEWS 4HESE RESOURCES USED TO BE ONLY AVAILABLE TO PROFESSIONAL TRADERS IN THE
INTERBANK MARKET
6))
'& 4
# /. 4!# 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
4RADING &OREX
& OREX TRADING IS THE SIMULTANEOUS BUYING OF ONE CURRENCY AND SELLING OF ANOTHER AND IS TRADED IN PAIRS
EG %URO53 $OLLAR OR 53 $OLLAR*APANESE 9EN &OR SPECULATORS THE BEST TRADING PROSPECTS ARE WITH THE MOST
COMMONLY TRADED CURRENCIES CALLED hTHE MAJORSv -ORE THAN PERCENT OF ALL DAILY TRANSACTIONS INVOLVE TRADING THE
MAJORS INCLUDING THE 53 $OLLAR *APANESE 9EN %URO "RITISH 0OUND 3WISS &RANC #ANADIAN $OLLAR AND !USTRALIAN
$OLLAR
,IKE MOST OTHER FINANCIAL INSTRUMENTS FOREX IS QUOTED ON A hBIDv AND hASKv PRICE SYSTEM &OR INSTANCE
THE BID IS THE PRICE AT WHICH A DEALER IS WILLING TO BUY AND CLIENTS CAN SELL THE BASE CURRENCY FOR A COUNTER
CURRENCY 4HE ASK PRICE ON THE OTHER HAND IS THE PRICE AT WHICH DEALERS WILL SELL AND CLIENTS CAN BUY THE BASE
CURRENCY FOR THE COUNTER CURRENCY
53$ *09 53$ *09 53$ *09
BASE CURRENCY COUNTER CURRENCY BUY SELL BID ASK
4HE FOREX MARKET LITERALLY FOLLOWS THE SUN AROUND THE GLOBE BEGINNING IN 3YDNEY AND MOVING AS THE
BUSINESS DAY BEGINS IN EACH FINANCIAL CENTER &OR EXAMPLE WHEN THE 0ACIFIC 2IM MARKETS SUCH AS *APAN AND
3INGAPORE BEGIN TO SLOW THE %UROPEAN MARKETS OPEN
4HESE MARKETS ARE THEN FOLLOWED BY THE .ORTH !MERICAN MARKETS OF THE 5NITED 3TATES #ANADA AND
-EXICO !S THESE SLOW DOWN FOR THE EVENING THE TRADING CYCLE IN !USTRALIA BEGINS AGAIN 5NLIKE ANY OF THE OTHER
FINANCIAL MARKETS SPECULATORS CAN RESPOND TO CURRENCY FLUCTUATIONS CAUSED BY ECONOMIC SOCIAL AND POLITICAL
EVENTS AT THE TIME THEY OCCUR DAY OR NIGHT
6)))
'& 4
# /. 4!# 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
(ISTORY OF 'LOBAL &OREX 4RADING
' LOBAL &OREX 4RADING '&4 $IVISION OF 'LOBAL &UTURES &OREX ,TD WAS FOUNDED IN BY 'ARY , 4ILKIN '&4 WAS
CREATED TO ADDRESS THE INCREASING NUMBER OF CURRENCY TRADING DEMANDS 4ILKINS CLIENTS HAD IN THE FUTURES AND SPOT FOREX
MARKETS 4ILKIN ALSO FORMED '&4 TO BRING INTEGRITY IN PRODUCTS AND IMPROVED CUSTOMER SERVICE TO FOREX CLIENTS AN EMERGING
MARKET FOR INDIVIDUAL SPECULATION 'LOBAL &UTURES &OREX ,TD REMAINS THE PARENT COMPANY OF '&4 WITH ITS BUSINESS FOCUSED
ON PROVIDING CLIENTS ACCESS TO FUTURES CONTRACTS
'&4S FOUNDING PRINCIPALS WERE AIMED AT CREATING THE BEST TECHNOLOGICAL INFRASTRUCTURE AND FOREX TRADING SOFTWARE
WHILE DELIVERING THE BEST POSSIBLE CLIENT SERVICES )TS MANAGEMENT TEAM IDENTIFIED THE UNION BETWEEN FOREX AND THE )NTERNET
WOULD CREATE A NICHE MARKET GEARED FOR INDIVIDUAL FOREX SPECULATORS 4HE COMBINATION RESULTED IN A NEW GENERATION OF BROKERAGE
FIRMS COMPETING FOR CUSTOMERS WHO DEMANDED SPEED ACCURACY AND ACCOUNTABILITY TO PURSUE FOREX PRICING AND TRADING
7HILE MANY OTHER FOREX FIRMS FOCUSED ON DEVELOPING A FOREX MARKET AND HIGH COST TRAINING PROGRAMS '&4 CONCEN
TRATED ON BUILDING AND PERFECTING FOREX SOFTWARE TECHNOLOGY AND TOOLS 4RADERS NEEDED FAST ACCURATE DELIVERY OF CURRENCY
PRICES IN ORDER TO MAKE INFORMED TRADING DECISIONS ON FASTnMOVING FOREX MARKETS BUT MOST SOFTWARE HAD FAILED TO KEEP UP
'&4S TURNING POINT HAPPENED SHORTLY AFTER BUILDING ITS OWN PROPRIETARY FOREX TRADING PLATFORM FOLLOWED BY DISCONTINUING ITS USE
OF THIRDnPARTY SOFTWARE THAT DID NOT MEET ITS PERFORMANCE NEEDS
!T THE SAME TIME IT LEVERAGED RELATIONSHIPS WITH EXPERIENCED FOREX PROFESSIONALS '&4 EMPLOYED A TEAM OF EXPERTS IN
SOFTWARE DEVELOPMENT TO CREATE A FOREX TRADING PLATFORM LIKE NO OTHER '&4S PROPRIETARY TRADING SOFTWARE PLATFORM FOR FOREX
TRADERS CALLED $EAL"OOK§ &8 WAS VALIDATED BY FOREX USERS AROUND THE WORLD IN 7INNING SEVERAL INDUSTRY AWARDS
$EAL"OOK§ &8 HELPED TO BUILD '&4 INTO A WORLD
LEADER IN ONLINE FOREX TRADING BY THE END OF
'&4S TRADING PLATFORM IS UNIQUE BECAUSE ITS POWERED USING MANY OF THE SAME TOOLS ONCE ONLY AVAILABLE TO INTERBANK
PROFESSIONALS "UNDLED INTO ONE PROGRAM THE PLATFORM DELIVERS RESOURCES SUCH AS REALnTIME CURRENCY PRICES REALnTIME PRICE
CHARTING TECHNICAL INDICATORS AND UP
TO
THE
MINUTE WORLD AND FINANCIAL NEWS )N '&4 INTRODUCED A SECOND GENERATION OF
ITS SOFTWARE $EAL"OOK§ &8 )N ADDITION '&4 INTRODUCED $EAL"OOK§ &8 -OBILE A FULLnFEATURED FOREX TRADING APPLICATION FOR
POCKET PC USERS "OTH OF THESE PRODUCTS BOLSTERED '&4 AS A TECHNOLOGY INNOVATOR
)N ADDITION TO SOFTWARE ANOTHER BACKBONE OF '&4S ONLINE CURRENCY TRADING SERVICES IS FOUND IN ITS INVESTMENT IN
TECHNOLOGY 4RADERS WHO USE '&4 ACHIEVE MAXIMUM SECURITY AND RELIABILITY TO GET THE INFORMATION NEEDED FOR INSTANT RESULTS )TS
SYSTEMS UTILIZE A FAST ORDER EXECUTION AND TRADING STRUCTURE SUPPORTED BY MULTIPLE REDUNDANT SERVER CLUSTERS )NTERNET CONNEC
TIONS AND BACKUP POWER SYSTEMS
3ERVING CUSTOMERS IN COUNTRIES WORLDWIDE '&4 IS PARTNERED WITH REFERRING PARTIES THAT INTRODUCE NEW TRADERS TO
'&4 AND ITS SERVICES '&4 ALSO OFFERS PRIVATE hWHITE LABELINGv OF ITS SOFTWARE FOR COMPANIES WHO ARE LOOKING TO BUILD THEIR OWN
BRAND IN THE MARKET 4HE KEY TO '&4S POPULARITY WITH INDEPENDENT AFFILIATES IS ITS ABILITY TO DELIVER RELIABLE COMPETITIVE CURRENCY
PRICING AND QUALITY IN ITS PRODUCTS AND SERVICES
4O DATE '&4 HAS REALIZED TRIPLEnDIGIT GROWTH IN EACH SUCCESSIVE YEAR THROUGH '&4S TECHNOLOGICAL INFRASTRUC
TURE AND INVESTMENT IN FOREX TRADING SOFTWARE INDICATES MORE GROWTH IN THE FUTURE AS THE DEMAND FOR ITS PRODUCTS AND SERVICES
CONTINUES TO ASSIST FOREX TRADERS THROUGHOUT THE WORLD
)8
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE !USTRALIA
30/4
#URRENCY !USTRALIAN $OLLAR
#OMMON .AME !USSIE
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS !5$ 53$
!VERAGE "ID /FFER
PIPS
PIP 53$
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
%#/./-)# /6%26)%7
!USTRALIAS GROSS DOMESTIC PRODUCT '$0 FOR WAS CLOSE TO BILLION 53$ 4HE ECONOMY IS RELATIVELY SMALL BUT ON A PER
CAPITA BASIS IS COMPARABLE TO MANY INDUSTRIALIZED 7ESTERN %UROPEAN COUNTRIES !USTRALIA HAS A SERVICEnORIENTED ECONOMY WITH
CLOSE TO PERCENT OF ITS '$0 COMING FROM INDUSTRIES SUCH AS FINANCE PROPERTY AND BUSINESS SERVICES (OWEVER THE COUNTRY
HAS A TRADE DEFICIT WITH MANUFACTURING DOMINATING ITS EXPORTING ACTIVITIES 2URAL AND MINERAL EXPORTS ACCOUNT FOR OVER PERCENT
OF ALL MANUFACTURING EXPORTS !S A RESULT THE ECONOMY IS HIGHLY SENSITIVE TO CHANGES IN COMMODITY PRICES
*APAN AND THE !3%!. !SSOCIATION OF 3OUTHEAST !SIAN .ATIONS ARE THE LEADING IMPORTERS OF !USTRALIAN GOODS )N THE PAST
HOWEVER !USTRALIA HAS EXPERIENCED MUCH OF THE SPILLOVER EFFECTS OF GENERAL !SIAN WEAKNESS 4HIS RESILIENCE STEMS FROM
!USTRALIAgS SOUND FOUNDATION OF STRONG DOMESTIC CONSUMER CONSUMPTION
-/.%4!29 &)3#!, 0/,)#9
4HE 2ESERVE "ANK OF !USTRALIA 2"! IS RESPONSIBLE FOR THE MONETARY POLICY OF !USTRALIA $ECISIONS ON MONETARY POLICY ARE
BASED UPON CONSENSUS WITHIN THE COMMITTEE
4HE 2"!S CHARTER STATES THAT THE MANDATE OF THE 2ESERVE "ANK "OARD IS TO FOCUS MONETARY AND BANKING POLICY TO HELP ENSURE
n THE STABILITY OF THE CURRENCY OF !USTRALIA
n THE MAINTENANCE OF FULL EMPLOYMENT IN !USTRALIA AND
n THE ECONOMIC PROSPERITY AND WELFARE OF THE PEOPLE OF !USTRALIA
)N ORDER TO ACHIEVE THESE OBJECTIVES THE GOVERNMENT HAS SET AN INFORMAL CONSUMER PRICE INFLATION TARGET OF TO PERCENT PER
YEAR
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE !USTRALIA P
&OREIGN #URRENCIES 'UIDE !USTRALIA
-/.%4!29 &)3#!, 0/,)#9 CONTINUED
#ASH RATE 4HIS IS THE 2"!S TARGET RATE FOR OPEN MARKET OPERATIONS 4HE CASH RATE IS THE RATE CHARGED ON OVERNIGHT LOANS
BETWEEN FINANCIAL INTERMEDIARIES !S A RESULT THE CASH RATE SHOULD HAVE A CLOSE RELATIONSHIP WITH THE PREVAILING MONEY MARKET
INTEREST RATES #HANGES IN MONETARY POLICY DIRECTLY AFFECT THE INTEREST RATE STRUCTURE OF THE FINANCIAL SYSTEM
/PEN MARKET OPERATIONS 4HE FOCUS OF DAILY OPEN MARKET OPERATIONS IS TO KEEP THE CASH RATE CLOSE TO THE TARGET BY MANAGING
MONEY MARKET LIQUIDITY PROVIDED TO COMMERCIAL BANKS )F THE 2ESERVE "ANK WISHES TO DECREASE THE CASH RATE THEY WOULD
INCREASE SUPPLY OF SHORTnDATED REPURCHASE AGREEMENTS AT A LOWER INTEREST RATE THAN THE PREVAILING CASH RATE WHICH WOULD IN
ESSENCE DECREASE THE CASH RATE )F THE 2ESERVE "ANK WISHES TO INCREASE THE CASH RATE THEY WOULD DECREASE SUPPLY OF SHORT
DATED REPURCHASE AGREEMENTS WHICH WOULD IN ESSENCE INCREASE THE CASH RATE ! REPURCHASE AGREEMENT INVOLVES A CASH TAKER
COMMERCIAL BANK SELLING SECURITIES TO A CASH PROVIDER 2"! WHILE AGREEING TO REPURCHASE THE SECURITIES OF THE SAME TYPE AND
QUANTITY AT A LATER DATE 4HIS STRUCTURE IS SIMILAR TO A SECURED LOAN WHEREBY THE CASH TAKER MUST PAY THE CASH PROVIDER INTEREST
4HESE REPO TRANSACTIONS TEND TO HAVE VERY SHORT MATURITIES RANGING FROM ONE DAY TO A FEW WEEKS
3INCE !USTRALIA HAS HAD A FLOATING EXCHANGE RATE 4HE 2ESERVE "ANK OF !USTRALIA MAY UNDERTAKE FOREIGN EXCHANGE MARKET
OPERATIONS WHEN THE MARKET THREATENS TO BECOME EXCESSIVELY VOLATILE OR WHEN THE EXCHANGE RATE IS CLEARLY INCONSISTENT WITH
UNDERLYING ECONOMIC FUNDAMENTALS 4HE 2"! MONITORS A TRADEnWEIGHTED INDEX 47) AS WELL AS THE CROSSnRATE WITH THE 53
DOLLAR )NTERVENTION OPERATIONS ARE INVARIABLY AIMED AT STABILIZING MARKET CONDITIONS RATHER THAN MEETING EXCHANGE RATE TARGETS
4HE 2"! MEETS EVERY MONTH EXCEPT FOR *ANUARY ON THE FIRST 4UESDAY OF EACH MONTH TO DISCUSS POTENTIAL CHANGES IN MONETARY
POLICY &OLLOWING EACH MEETING THE 2"! ISSUES A PRESS RELEASE OUTLINING JUSTIFICATIONS FOR THEIR MONETARY POLICY CHANGES 4HEY
ALSO PUBLISH A MONTHLY 2ESERVE "ANK "ULLETIN 4HE -AY AND .OVEMBER ISSUES OF THE 2ESERVE "ANK "ULLETIN INCLUDE THE 3EMI
!NNUAL STATEMENT ON THE #ONDUCT OF -ONETARY 0OLICY 4HE &EBRUARY -AY !UGUST AND .OVEMBER ISSUES CONTAIN A 1UARTERLY
2EPORT ON THE %CONOMY AND &INANCIAL -ARKETS )T IS IMPORTANT TO READ THESE BULLETINS FOR SIGNALS ON POTENTIAL MONETARY POLICY
CHANGES
)-0/24!.4 #(!2!#4%2)34)# /& 4(% !5342!,)!. $/,,!2
#OMMODITYnLINKED CURRENCY
4HE !5$ HAS AN PERCENT CORRELATION WITH COMMODITIES AND MORE SPECIFICALLY GOLD PRICES )TS LINK TO GOLD STEMS FROM !USTRA
LIA BEING THE THIRD LARGEST GOLD PRODUCER IN THE WORLD AND REPRESENTS APPROXIMATELY BILLION IN EXPORTS FOR THE NATION EACH YEAR
!S A RESULT THE !5$ BENEFITS WHEN COMMODITY PRICES INCREASE /F COURSE IT ALSO DECREASES WHEN COMMODITY PRICES DECLINE
#ARRY TRADE EFFECTS
!USTRALIA HAS ONE OF HIGHEST INTEREST RATES AMONG THE DEVELOPED COUNTRIES 7ITH A FAIRLY LIQUID CURRENCY THE !5$ IS ONE OF THE
MOST POPULAR CURRENCIES TO BUY FOR CARRY TRADES
)NTEREST RATE DIFFERENTIALS BETWEEN THE CASH RATES OF !USTRALIA AND THE SHORTnTERM INTEREST RATE YIELDS OF OTHER INDUSTRIAL
IZED COUNTRIES ARE CLOSELY FOLLOWED
)NTEREST RATE DIFFERENTIALS CAN BE GOOD INDICATORS OF POTENTIAL MONEY FLOWS AS THEY INDICATE HOW MUCH YIELD PREMIUM !5$
SHORTnTERM FIXED INCOME ASSETS ARE OFFERING OVER FOREIGN SHORT
TERM FIXED INCOME ASSETS OR VICE VERSA 4HIS DIFFERENTIAL PROVIDES
TRADERS WITH INDICATIONS OF POTENTIAL CURRENCY MOVEMENTS AS INVESTORS ARE ALWAYS LOOKING FOR ASSETS WITH THE HIGHEST YIELDS
3EVERE WEATHER CONDITIONS SUCH AS DROUGHTS NEGATIVELY AFFECT !USTRALIAS ECONOMY
3INCE THE BULK OF !USTRALIAS EXPORTS ARE COMMODITIES THE COUNTRYS '$0 IS HIGHLY SENSITIVE TO SEVERE WEATHER CONDITIONS THAT
MAY DAMAGE THE COUNTRYgS FARMING ACTIVITIES 4HIS IS ESPECIALLY IMPORTANT BECAUSE AGRICULTURE ACCOUNTS FOR PERCENT OF THE
COUNTRYS '$0 4HE 2"! ESTIMATES THAT THE hDECLINE IN FARM PRODUCTION COULD DIRECTLY REDUCE '$0 GROWTH BY AROUND PERCENT
AGE POINTv !SIDE FROM EXPORTING ACTIVITIES A DROUGHT ALSO HAS INDIRECT EFFECTS ON INDUSTRIES THAT SUPPLY AND SERVICE AGRICULTURE
'&4 &OREIGN #URRENCIES 'UIDE !USTRALIA P
&OREIGN #URRENCIES 'UIDE !USTRALIA
)-0/24!.4 %#/./-)# ).$)#!4/23 &/2 !5342!,)!
'ROSS $OMESTIC 0RODUCT '$0
#ONSUMER 0RICE )NFLATION #0)
"ALANCE OF 'OODS AND 3ERVICES
0RIVATE #ONSUMPTION
0RODUCER 0RICE )NDEX 00)
'&4 &OREIGN #URRENCIES 'UIDE !USTRALIA P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE #ANADA
30/4
#URRENCY #ANADIAN $OLLAR
#OMMON .AME #ANADIAN
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ #!$
!VERAGE "ID /FFER
PIPS
PIP #!$
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
%#/./-)# /6%26)%7
#ANADA IS THE TH LARGEST COUNTRY IN THE WORLD WITH '$0 VALUED AT BILLION 53$ IN 4HE COUNTRY HAS BEEN GROWING
CONSISTENTLY SINCE #ANADA IS CURRENTLY THE WORLDS TH LARGEST PRODUCER OF GOLD AND THE TH LARGEST PRODUCER OF OIL
(OWEVER TWOnTHIRDS OF THE COUNTRYS '$0 COMES FROM THE SERVICE SECTOR WHICH EMPLOYS OUT #ANADIANS -ANUFACTURING AND
RESOURCES ARE VERY IMPORTANT FOR THE #ANADIAN ECONOMY AS IT REPRESENTS OVER PERCENT OF THE COUNTRYS EXPORTS
-/.%4!29 &)3#!, 0/,)#9
4HE "ANK OF #ANADA "O# DETERMINES MONETARY POLICY FOR #ANADA 4HE "O# DOES NOT HAVE PERIODIC POLICY SETTING MEETINGS
)NSTEAD THE COUNCIL MEETS ON A DAILY BASIS AND CHANGES IN POLICY CAN BE MADE AT ANY POINT IN TIME
4HE "ANK OF #ANADAS FOCUS IS ON MAINTAINING THE INTEGRITY AND VALUE OF THE #ANADIAN DOLLAR CURRENCY 4HIS PRIMARILY INVOLVES
ENSURING PRICE STABILITY 0RICE STABILITY IS MAINTAINED BY ADHERING TO AN INFLATION TARGET AGREED UPON WITH THE #ANADAS $EPART
MENT OF &INANCE 4HIS INFLATION TARGET IS CURRENTLY SET AT PERCENT TO PERCENT 4HE "O# CONTROLS INFLATION THROUGH SHORTnTERM
INTEREST RATES -ONETARY CONDITIONS TIGHTEN WHEN SHORTnTERM RATES INCREASE OR THE TRADEnWEIGHTED #ANADIAN DOLLAR APPRECIATES
4O CHANGE MONETARY POLICIES THE BANK WOULD MANIPULATE THE BANK RATE WHICH WOULD AFFECT THE EXCHANGE RATE )F THE CURRENCY
APPRECIATES TO UNDESIRABLE LEVELS THE "O# CAN DECREASE INTEREST RATES TO OFFSET THE RISE )F IT DEPRECIATES THE "O# CAN RAISE
RATES (OWEVER INTEREST RATE CHANGES ARE NOT USED FOR THE PURPOSES OF MANIPULATING THE EXCHANGE RATE )NSTEAD IT IS USED TO
CONTROL INFLATION
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE #ANADA P
&OREIGN #URRENCIES 'UIDE #ANADA
-/.%4!29 &)3#!, 0/,)#9 CONTINUED
4HE FOLLOWING ARE THE MOST COMMONLY USED TOOLS BY THE "O# TO IMPLEMENT MONETARY POLICY
'ROSS $OMESTIC 0RODUCT '$0
"ANK 2ATE 4HIS IS THE MAIN RATE USED TO CONTROL INFLATION 4HIS IS THE RATE OF INTEREST THAT THE "ANK OF #ANADA CHARGES TO COMMERCIAL BANKS
#HANGES TO THIS RATE WILL AFFECT OTHER INTEREST RATES INCLUDING MORTGAGE RATES AND PRIME RATES CHARGED BY COMMERCIAL BANKS 4HEREFORE CHANGES
TO THIS RATE FILTER INTO THE OVERALL ECONOMY
/PEN -ARKET /PERATIONS 4HE ,ARGE 6ALUE 4RANSFER 3YSTEM ,643 IS THE FRAMEWORK FOR THE "O#S IMPLEMENTATION OF MONETARY POLICY )T IS THROUGH
THIS FRAMEWORK THAT #ANADAS COMMERCIAL BANKS BORROW AND LEND OVERNIGHT MONEY TO EACH OTHER IN ORDER TO FUND THEIR DAILY TRANSACTIONS 4HE ,643
IS AN ELECTRONIC PLATFORM THROUGH WHICH THESE FINANCIAL INSTITUTIONS CONDUCT LARGE TRANSACTIONS 4HE INTEREST RATE CHARGED ON THESE OVERNIGHT LOANS
IS CALLED THE OVERNIGHT RATE OR BANK RATE 4HE "O# CAN MANIPULATE THE OVERNIGHT RATE BY OFFERING TO LEND AT RATES LOWER OR HIGHER THAN THE CURRENT
MARKET RATE IF THE OVERNIGHT LENDING RATE IS TRADING ABOVE OR BELOW THE TARGET BANKS
/N A REGULAR BASIS THE BANK RELEASES A NUMBER OF PUBLICATIONS THAT ARE IMPORTANT TO WATCH 4HIS INCLUDES A BIANNUAL MONETARY POLICY REPORT THAT
CONTAINS AN ASSESSMENT OF THE CURRENT ECONOMIC ENVIRONMENT AND IMPLICATIONS FOR INFLATION AND A QUARTERLY "ANK OF #ANADA 2EVIEW THAT INCLUDES
ECONOMIC COMMENTARY FEATURED ARTICLES SPEECHES BY MEMBERS OF THE GOVERNING COUNCIL AND IMPORTANT ANNOUNCEMENTS
)-0/24!.4 #(!2!#4%2)34)#3 /& 4(% #!.!$)!. $/,,!2
#OMMODITY LINKED CURRENCY
#ANADAS ECONOMY IS HIGHLY DEPENDENT ON COMMODITIES 4HE POSITIVE CORRELATION BETWEEN THE #ANADIAN DOLLAR AND COMMODITY PRICES IS CLOSE TO
PERCENT 4YPICALLY AS COMMODITY PRICES INCREASE THE #!$ INCREASES AND WHEN COMMODITY PRICES DECREASE THE #!$ DECLINES
3TRONG CORRELATION WITH THE 53
4HE 53 IMPORTS PERCENT OF #ANADAS EXPORTS 4HE #ANADIAN ECONOMY IS HIGHLY SENSITIVE TO CHANGES IN THE 53 ECONOMY
-ERGERS AND ACQUISITIONS BETWEEN FIRMS IN THE 53 AND #ANADA ARE VERY COMMON
$UE TO THE PROXIMITY OF THE 53 AND #ANADA CROSSnBORDER MERGERS AND ACQUISITIONS ARE VERY COMMON AS COMPANIES WORLDWIDE STRIVE FOR
GLOBALIZATION 4HESE MERGERS AND ACQUISITIONS LEAD TO MONEY FLOWING BETWEEN THE TWO COUNTRIES WHICH ULTIMATELY AFFECT THE CURRENCIES
)NTEREST RATE DIFFERENTIALS BETWEEN THE CASH RATES OF #ANADA AND THE SHORT
TERM INTEREST RATE YIELDS OF OTHER INDUSTRIALIZED COUNTRIES ARE
CLOSELY FOLLOWED
)NTEREST RATE YIELD DIFFERENTIALS PROVIDE TRADERS WITH INDICATIONS OF POTENTIAL CURRENCY MOVEMENTS AS INVESTORS ARE ALWAYS LOOKING FOR ASSETS WITH
THE HIGHEST YIELDS
#ARRY TRADES
7HEN #ANADA HAS A HIGHER INTEREST RATE THAN THE 53 THE SELLn53$ BUYn#!$ CARRY TRADE BECOMES MORE POPULAR DUE TO THE PROXIMITY OF THE TWO
COUNTRIES
)-0/24!.4 %#/./-)# ).$)#!4/23 &/2 #!.!$!
5NEMPLOYMENT
#ONSUMER 0RICE )NDEX #0)
'ROSS $OMESTIC 0RODUCT '$0
"ALANCE OF 4RADE
0RODUCER 0RICE )NDEX 00)
#ONSUMER #ONSUMPTION
'&4 &OREIGN #URRENCIES 'UIDE #ANADA P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE %UROPEAN 5NION
30/4
#URRENCY %URO
#OMMON .AME %URO
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS %52 53$
!VERAGE "ID /FFER
PIPS
PIP 53$
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
%#/./-)# /6%26)%7
4HE %UROPEAN 5NION %5 WAS DEVELOPED AS AN INSTITUTIONAL FRAMEWORK FOR THE CONSTRUCTION OF A UNITED %UROPE 4HE %5 CONSISTS
OF MEMBER COUNTRIES !USTRIA "ELGIUM $ENMARK &INLAND &RANCE 'ERMANY 'REECE )RELAND )TALY ,UXEMBOURG 4HE
.ETHERLANDS 0ORTUGAL 3PAIN 3WEDEN AND THE 5NITED +INGDOM !LL OF THESE COUNTRIES SHARE THE %URO AS A COMMON CURRENCY
EXCEPT FOR $ENMARK 3WEDEN AND THE 5NITED +INGDOM 4HEY ARE KNOWN AS THE %UROPEAN -ONETARY 5NION %-5 !SIDE FROM A
COMMON CURRENCY THESE COUNTRIES ALSO SHARE A SINGLE MONETARY POLICY DICTATED BY THE %UROPEAN #ENTRAL "ANK OR %#"
4HE %-5 IS THE WORLDS SECOND LARGEST ECONOMIC POWER WITH '$0 VALUED AT OVER TRILLION 53$ IN 7ITH A HIGHLY
DEVELOPED FIXED INCOME EQUITY AND FUTURES MARKET THE %-5 HAS THE SECOND MOST ATTRACTIVE INVESTMENT MARKET FOR DOMESTIC
AND INTERNATIONAL INVESTORS 4HE %-5 IS PRIMARILY A SERVICEnORIENTED ECONOMY 3ERVICES IN ACCOUNTED FOR APPROXIMATELY
PERCENT OF '$0 WHILE MANUFACTURING MINING AND UTILITIES ONLY ACCOUNT FOR PERCENT OF '$0
4HE %-5 IS A TRADEn AND CAPITALnFLOW DRIVEN ECONOMY 5NLIKE MOST MAJOR ECONOMIES THE %-5 DOES NOT HAVE A LARGE TRADE
DEFICIT OR SURPLUS )N FACT THE %-5 WENT FROM A SMALL TRADE DEFICIT IN TO A SMALL TRADE SURPLUS IN %5 EXPORTS COMPRISE
APPROXIMATELY PERCENT OF WORLD TRADE WHILE %5 IMPORTS ACCOUNT FOR ONLY PERCENT OF TOTAL WORLD IMPORTS "ECAUSE OF THE
SIZE OF THE %-5S TRADE WITH THE REST OF THE WORLD IT HAS SIGNIFICANT POWER IN THE INTERNATIONAL TRADE ARENA )NTERNATIONAL CLOUT IS
ONE OF THE PRIMARY GOALS WHEN THE %5 WAS FORMED ALLOWING THE INDIVIDUAL COUNTRIES TO GROUP AS ONE ENTITY AS WELL AS NEGOTIATING
A MORE EQUAL PLAYING FIELD WITH THE 53 ITS LARGEST TRADING PARTNER
4HE %5S GROWING ROLE IN INTERNATIONAL TRADE HAS IMPORTANT IMPLICATIONS FOR THE ROLE OF THE %URO AS A RESERVE CURRENCY )T IS IMPOR
TANT FOR COUNTRIES TO HAVE LARGE AMOUNT OF RESERVE CURRENCIES TO REDUCE EXCHANGE RISK AND TRANSACTION COSTS 4RADITIONALLY MOST
INTERNATIONAL TRADE TRANSACTIONS INVOLVE THE "RITISH 0OUND THE *APANESE 9EN ANDOR THE 53 $OLLAR "EFORE THE %URP WAS
ESTABLISHMENT OF THE %URO IT WAS UNREASONABLE TO HOLD LARGE AMOUNTS OF EVERY INDIVIDUAL %5 NATIONAL CURRENCY !S A RESULT
CURRENCY RESERVES TENDED TOWARD THE DOLLAR !T THE END OF THE S APPROXIMATELY PERCENT OF ALL WORLD RESERVES WERE HELD
IN 53 DOLLARS BUT WITH THE INTRODUCTION OF THE EURO FOREIGN RESERVE ASSETS ARE SHIFTING IN FAVOR OF THE EURO 4HIS TREND IS EXPECTED
TO CONTINUE WHILE THE %5 BECOMES ONE OF THE MAJOR TRADING PARTNERS FOR MOST COUNTRIES AROUND THE WORLD
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE %UROPEAN 5NION P
&OREIGN #URRENCIES 'UIDE %UROPEAN 5NION
-/.%4!29 &)3#!, 0/,)#9
4HE %UROPEAN #ENTRAL "ANK %#" IS THE GOVERNING BODY RESPONSIBLE FOR DETERMINING THE MONETARY POLICY OF THE COUNTRIES PARTICIPATING IN THE
%-5 4HE %#"S EXECUTIVE BOARD COMPRISES A PRESIDENT A VICE PRESIDENT AND FOUR BOARD MEMBERS 4HESE INDIVIDUALS ALONG WITH THE GOVERNORS
OF THE NATIONAL CENTRAL BANKS MAKE UP A GOVERNING COUNCIL THAT MAKES NEW MONETARY POLICY DECISIONS #HANGES OR DECISIONS ARE TYPICALLY MADE
BY MAJORITY VOTE AND THE %#"S PRESIDENT HAS THE CASTING VOTE IN THE EVENT OF A TIE 4HE COUNCIL HOLDS MEETINGS ON A BIWEEKLY BASIS
4HE %-5S PRIMARY OBJECTIVE IS TO MAINTAIN PRICE STABILITY AND TO PROMOTE GROWTH -ONETARY AND FISCAL POLICY CHANGES ARE MADE TO ENSURE THAT THIS
OBJECTIVE IS MET 7ITH THE FORMATION OF THE %-5 THE -AASTRICHT 4REATY WAS DEVELOPED BY THE %5 TO APPLY A NUMBER OF CRITERIA OBJECTIVES AND GOALS
FOR EACH MEMBER COUNTRY $EVIATIONS FROM THESE CRITERIA BY ANY ONE COUNTRY WILL RESULT IN HEAVY FINES ,ISTED BELOW ARE THE %-5 CRITERIA )T IS
APPARENT BASED UPON THESE MEASURES THAT THE %#" HAS A STRICT MANDATE FOCUSED ON INFLATION AND DEFICIT 'ENERALLY THE %#" STRIVES TO MAINTAIN
ANNUAL GROWTH IN (#0) (ARMONIZED #ONSUMER 0RICE )NDEX BELOW PERCENT AND - MONEY SUPPLY ANNUAL GROWTH AROUND PERCENT
4(% %-5 #2)4%2)!
)N THE 4REATY ON %UROPEAN 5NION THE -AASTRICHT 4REATY THE FOLLOWING CRITERION WERE FORMULATED AS A PRECONDITION FOR ANY %5 MEMBER STATE
JOINING ECONOMIC AND MONETARY UNION %-5
! RATE OF INFLATION NO MORE THAN PERCENT ABOVE THE AVERAGE OF THE THREE BEST PERFORMING MEMBER STATES TAKING THE AVERAGE OF
THE nMONTH YEARnONnYEAR RATE PRECEDING THE ASSESSMENT DATE
,ONGnTERM INTEREST RATES NOT EXCEEDING THE AVERAGE RATES OF THESE LOWnINFLATION STATES BY MORE THAN PERCENT FOR THE PRECEDING
MONTHS
%XCHANGE RATES WHICH FLUCTUATE WITHIN THE NORMAL MARGINS OF THE EXCHANGEnRATE MECHANISM %2- FOR AT LEAST TWO YEARS
! GENERAL GOVERNMENT DEBT'$0 RATIO OF NOT MORE THAN PERCENT ALTHOUGH A HIGHER RATIO MAY BE PERMISSIBLE IF IT IS hSUFFICIENTLY
DIMINISHINGv
! GENERAL GOVERNMENT DEFICIT NOT EXCEEDING PERCENT OF '$0 ALTHOUGH A SMALL AND TEMPORARY EXCESS CAN BE PERMITTED
4HE PRIMARY TOOLS THE %#" USES TO CONTROL MONETARY POLICY IS THE FOLLOWING
/PEN -ARKET /PERATIONS 4HE %#" HAS FOUR MAIN CATEGORIES OF OPEN MARKET OPERATIONS TO STEER INTEREST RATES MANAGE LIQUIDITY AND SIGNAL ITS
MONETARY POLICY STANCE 4HESE CATEGORIES ARE MAIN REFINANCING OPERATIONS WITH AVERAGE MATURITIES OF TWO WEEKS LONGERnTERM REFINANCING
OPERATIONS WITH AVERAGE MATURITIES OF THREE MONTHS FINE TUNING OPERATIONS DONE AD HOC TO MANAGE LIQUIDITY AND STRUCTURAL OPERATIONS SUCH AS THE
ISSUANCE OF DEBT CERTIFICATES OR REVERSE TRANSACTIONS
%#" -INIMUM "ID 2ATE REPO RATE 4HIS RATE IS THE KEY POLICY TARGET FOR THE %#" )T IS THE LEVEL OF BORROWING THAT THE %#" OFFERS TO THE CENTRAL
BANKS OF ITS MEMBER STATES 4HIS IS THE RATE THAT IS SUBJECT TO CHANGE AT THE BIWEEKLY %#" MEETINGS 3INCE INFLATION IS OF HIGH CONCERN TO THE %#"
THEY ARE MORE INCLINED TO KEEP INTEREST RATES AT LOFTY LEVELS TO PREVENT INFLATION #HANGES IN THE %#"S MINIMUM BID RATE HAVE LARGE RAMIFICATIONS FOR
THE %52
4HE %#" DOES NOT HAVE AN EXCHANGE RATE TARGET BUT WILL FACTOR IN EXCHANGE RATES IN THEIR POLICY DELIBERATIONS DUE TO EXCHANGE RATES AFFECT ON
PRICE STABILITY 4HEREFORE THE %#" IS NOT PREVENTED FROM INTERVENING IN THE FOREIGN EXCHANGE MARKETS IF THEY BELIEVE THAT INFLATION IS A CONCERN !S
A RESULT COMMENTS BY MEMBERS OF THE GOVERNING COUNCIL ARE WIDELY WATCHED BY THE FOREX MARKET PARTICIPANTS BECAUSE THEY FREQUENTLY MOVE THE
%52
4HE %#" PUBLISHES A MONTHLY BULLETIN DETAILING ANALYSIS OF ECONOMIC DEVELOPMENTS AND CHANGES TO ITS PERCEPTIONS OF ECONOMIC CONDITIONS WHICH
IS IMPORTANT TO FOLLOW FOR SIGNALS TO CHANGES IN THE BIAS OF MONETARY POLICY
'&4 &OREIGN #URRENCIES 'UIDE %UROPEAN 5NION P
&OREIGN #URRENCIES 'UIDE %UROPEAN 5NION
)-0/24!.4 #(!2!#4%2)34)#3 /& 4(% %52/
%5253$ CROSS IS THE MOST LIQUID CURRENCY
4HE %URO WAS INTRODUCED AS AN ELECTRONIC CURRENCY IN *AN !T THIS TIME THE %URO REPLACED ALL PREn%-5 CURRENCIES EXCEPT FOR THE
'REECES CURRENCY WHICH WAS CONVERTED TO THE %URO IN *AN !S A RESULT THE %5253$ CROSS IS NOW THE MOST LIQUID CURRENCY IN THE WORLD AND
ITS MOVEMENTS ARE USED AS THE PRIMARY GAGE OF BOTH GENERAL %UROPEAN AND 53 STRENGTHWEAKNESS
%URO RISKS AS A NEW CURRENCY
3INCE THE %URO IS A NEW CURRENCY THERE ARE NUMBER OF FACTORS THAT NEED TO BE CONSIDERED AS RISKS TO THE %URO THAT ARE NOT FACTORS FOR OTHER
CURRENCIES .AMELY THE %#" IS FREQUENTLY CONSIDERED AN UNTESTED CENTRAL BANK DUE TO ITS SHORT HISTORY 4HIS SHORT HISTORY DOES NOT GIVE MARKET
PARTICIPANTS A GOOD GAGE TO HOW THE CENTRAL BANK WOULD REACT UNDER DIFFERENT ECONOMIC AND POLITICAL CONDITIONS )N ADDITION SINCE THE %URO IS THE
CURRENCY FOR MEMBER COUNTRIES IT IS HIGHLY SENSITIVE TO POLITICAL OR ECONOMICAL INSTABILITIES IN ANY ONE COUNTRY
3PREAD BETWEEN TENnYEAR 53 4REASURIES AND TENnYEAR "UNDS CAN INDICATE %URO SENTIMENT
4HE TENnYEAR GOVERNMENT BONDS SERVE AS AN IMPORTANT INDICATOR OF FUTURE EURO EXCHANGE RATES ESPECIALLY AGAINST THE 53 DOLLAR 4HE DIFFERENTIAL
BETWEEN THE nYEAR 53 GOVERNMENT BOND AND THE nYEAR 'ERMAN "UND RATES CAN PROVIDE A GOOD INDICATION FOR %URO MOVEMENT )F "UND RATES
ARE HIGHER THAN TREASURY RATES AND THE DIFFERENTIAL INCREASES OR THE SPREAD WIDENS THIS IMPLIES %52 BULLISHNESS ! DECREASE IN THE DIFFERENTIAL OR
SPREAD TIGHTENING IS %52 BEARISH 4HE nYEAR 'ERMAN "UND IS TYPICALLY USED TO REPRESENT THE %UROZONE
)NTEREST RATE DIFFERENTIALS ARE USE TO PREDICT %URO AREA MONEY FLOWS
!NOTHER USEFUL INTEREST RATE IS THE n-ONTH )NTEREST 2ATE ALSO KNOWN AS THE %URO INTERBANK OFFER RATE OR THE %URIBOR RATE 4HIS IS THE RATE OFFERED
FROM ONE LARGE BANK TO ANOTHER ON INTERBANK TERM DEPOSITS 4RADERS TEND TO COMPARE THE %URIBOR FUTURES RATE WITH THE %URODOLLAR FUTURES RATE
%URODOLLARS ARE DEPOSITS DENOMINATED IN 53 DOLLARS AT BANKS AND OTHER FINANCIAL INSTITUTIONS OUTSIDE THE 5NITED 3TATES "ECAUSE INVESTORS LIKE
HIGH YIELDING ASSETS %UROPEAN FIXED INCOME ASSETS BECOME MORE ATTRACTIVE AS THE SPREAD BETWEEN %URIBOR FUTURES AND %URODOLLAR FUTURES WIDENS
IN FAVOR OF THE %URIBORS !S THE SPREAD NARROWS %UROPEAN ASSETS BECOME LESS ATTRACTIVE WHEREBY IMPLYING A POTENTIAL DECREASE IN MONEY FLOWS
INTO THE %URO
)-0/24!.4 ).$)#!4/23 &/2 4(% %52/
!LL OF THE FOLLOWING ECONOMIC INDICATORS ARE IMPORTANT FOR THE %URO (OWEVER SINCE THE %-5 CONSISTS OF COUNTRIES IT IS IMPORTANT TO KEEP ABREAST
OF POLITICAL AND ECONOMIC DEVELOPMENTS SUCH AS '$0 GROWTH INFLATION AND UNEMPLOYMENT FOR ALL MEMBER COUNTRIES 4HE LARGEST COUNTRIES WITHIN
THE %-5 ARE 'ERMANY &RANCE AND )TALY 4HEREFORE IN ADDITION TO THE OVERALL %-5 ECONOMIC DATA THE ECONOMIC DATA OF THESE THREE COUNTRIES ARE
THE MOST IMPORTANT
'ROSS $OMESTIC 0RODUCT '$0
)NDIVIDUAL #OUNTRY "UDGET $EFICITS
)&/ "USINESS #LIMATE 3URVEY
(ARMONIZED )NDEX OF #ONSUMER 0RICES (#)0
- MEASURE OF MONETARY SUPPLY TRACKED BY THE .EW 9ORK &EDERAL 2ESERVE "ANK AND REPORTED EVERY 4HURSDAY
'ERMAN 5NEMPLOYMENT
'ERMAN )NDUSTRIAL 0RODUCTION
'&4 &OREIGN #URRENCIES 'UIDE %UROPEAN 5NION P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE 'REAT "RITAIN 5NITED +INGDOM
30/4
#URRENCY 'REAT "RITISH 0OUND
#OMMON .AME 3TERLING #ABLE
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS '"0 53$
!VERAGE "ID /FFER
PIPS
PIP 53$
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
%#/./-)# /6%26)%7
4HE 5NITED +INGDOM IS THE WORLDS FOURTH LARGEST ECONOMY WITH '$0 VALUED AT OVER TRILLION 53$ IN 4HE ECONOMY IS
VERY HEALTHY WITH LOW UNEMPLOYMENT EXPANDING OUTPUT AND RESILIENT CONSUMPTION 4HE STRENGTH OF CONSUMER CONSUMPTION HAS
IN LARGE PART BEEN DUE TO A STRONG HOUSING MARKET WHICH IS CURRENTLY PERCENT ABOVE THE PEAK IN 4HE 5+ HAS A
SERVICEnORIENTED ECONOMY WITH MANUFACTURING REPRESENTING AN INCREASINGLY SMALLER PORTION OF '$0 EQUIVALENT TO ONLY ONEnFIFTH
OF ITS NATIONAL OUTPUT )TgS CAPITAL MARKET SYSTEMS ARE ONE OF THE MOST DEVELOPED IN THE WORLD AND AS A RESULT FINANCE AND
BANKING HAS BECOME THE STRONGEST CONTRIBUTORS TO '$0 !LTHOUGH THE MAJORITY OF THE 5+S '$0 IS FROM SERVICES IT IS IMPORTANT
TO KNOW THAT THEY ARE ALSO ONE OF THE LARGEST PRODUCERS AND EXPORTERS OF NATURAL GAS IN THE %5 4HE ENERGY PRODUCTION INDUSTRY
ACCOUNTS FOR PERCENT OF '$0 ONE OF THE HIGHEST SHARES OF ANY INDUSTRIALIZED NATION 4HIS IS PARTICULARLY IMPORTANT AS
INCREASES IN ENERGY PRICES SUCH AS OIL WILL SIGNIFICANTLY BENEFIT THE LARGE NUMBER OF 5+ OIL EXPORTERS
/VERALL THE 5+ IS A NET IMPORTER OF GOODS WITH A CONSISTENT TRADE DEFICIT )TS LARGEST TRADING PARTNER IS THE %UROPEAN 5NION
%5 WITH TRADE BETWEEN THE TWO CONSTITUENCIES ACCOUNTING FOR MORE THAN PERCENT OF ALL OF THE COUNTRYS IMPORT AND EXPORT
ACTIVITIES 4HE 53 ON AN INDIVIDUAL BASIS STILL REMAINS THE 5+S LARGEST TRADING PARTNER
4HE CENTRAL ISSUE THAT THE 5+ IS GRAPPLING WITH IS WHETHER OR NOT TO JOIN THE %URO 4HE DECISION ON %URO ENTRY HAS SIGNIFICANT
RAMIFICATIONS FOR THE 5+ ECONOMY #URRENTLY THIS IS THE KEY POLITICAL AND ECONOMIC AGENDA ON THE GOVERNMENTS PLATE 4HE
4REASURY HAS SPECIFIED FIVE ECONOMIC TESTS THAT MUST BE MET PRIOR TO %URO ENTRY
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE 'REAT "RITAIN 5NITED +INGDOM P
&OREIGN #URRENCIES 'UIDE 'REAT "RITAIN 5NITED +INGDOM
5+3 &)6% %#/./-)# 4%343 &/2 %52/
)S THERE SUSTAINABLE CONVERGENCE IN BUSINESS CYCLES AND ECONOMIC STRUCTURES BETWEEN THE 5+ AND OTHER %UROPEAN #URRENCY 5NITE
MEMBERS %#5 SO THAT THE 5+ CITIZENS COULD LIVE COMFORTABLY WITH %URO INTEREST RATES ON A PERMANENT BASIS
)S THERE ENOUGH FLEXIBILITY TO COPE WITH ECONOMIC CHANGE
7OULD JOINING THE %#5 CREATE AN ENVIRONMENT THAT WOULD ENCOURAGE FIRMS TO INVEST IN THE 5+
7OULD JOINING THE %#5 HAVE A POSITIVE INFLUENCE ON THE COMPETITIVENESS OF THE 5+gS FINANCIAL SERVICES INDUSTRY
7OULD JOINING THE %#5 BE GOOD FOR PROMOTING STABILITY AND GROWTH IN EMPLOYMENT
4HE 5+ IS A VERY POLITICAL COUNTRY WHERE GOVERNMENT OFFICIALS ARE HIGHLY CONCERNED WITH VOTER APPROVAL )F VOTERS DO NOT SUPPORT %URO ENTRY THE
LIKELIHOOD OF %#5 ENTRY WOULD DECLINE 4HE FOLLOWING ARE SOME OF THE ARGUMENTS FOR AND AGAINST ADOPTING THE %URO
!RGUMENTS IN FAVOR OF ADOPTING THE %URO
2EDUCED EXCHANGE RATE UNCERTAINTY FOR 5+ BUSINESSES AND LOWER EXCHANGE RATE TRANSACTION COSTS OR RISKS
4HE PROSPECT OF SUSTAINED LOW INFLATION UNDER THE GOVERNANCE OF THE %UROPEAN #ENTRAL "ANK SHOULD REDUCE LONG
TERM INTEREST RATES
AND STIMULATE SUSTAINED ECONOMIC GROWTH
3INGLE CURRENCY PROMOTES PRICE TRANSPARENCY
4HE INTEGRATION OF NATIONAL FINANCIAL MARKETS OF THE %5 WILL LEAD TO HIGHER EFFICIENCY IN THE ALLOCATION OF CAPITAL IN %UROPE
4HE %URO IS THE SECOND MOST IMPORTANT RESERVE CURRENCY AFTER THE 53$
7ITH THE 5+ JOINING THE %URO THE POLITICAL CLOUT OF THE %-5 WOULD INCREASE DRAMATICALLY
!RGUMENTS AGAINST ADOPTING THE %URO
#URRENCY UNIONS HAVE COLLAPSED IN THE PAST
%CONOMIC OR POLITICAL INSTABILITIES OF ONE COUNTRY WOULD AFFECT THE %URO WHICH WOULD HAVE EXCHANGE RATE RAMIFICATIONS FOR OTHERWISE
HEALTHY COUNTRIES
3TRICT %-5 CRITERIA
%NTRY WOULD MEAN A PERMANENT TRANSFER OF DOMESTIC MONETARY AUTHORITY TO THE %UROPEAN #ENTRAL "ANK
*OINING A CURRENCY UNION WITH NO MONETARY FLEXIBILITY WOULD REQUIRE THE 5+ TO HAVE MORE FLEXIBILITY IN THE LABOR AND HOUSING MARKETS
!DJUSTING TO NEW CURRENCY WILL REQUIRE LARGE TRANSACTION COSTS
/NE OF THE PRIMARY REASONS FOR NOT JOINING THE %URO IS THAT THE 5+ GOVERNMENT HAS SOUND MACROECONOMIC POLICIES THAT HAVE WORKED VERY WELL FOR
THE COUNTRY 4HEIR SUCCESSFUL MONETARY AND FISCAL POLICIES HAVE LED THEM TO OUTPERFORM MOST MAJOR ECONOMIES IN THE CURRENT ECONOMIC DOWNTURN
INCLUDING THE %5
-/.%4!29 &)3#!, 0/,)#9 -!+%23
4HE "ANK OF %NGLAND "O% IS THE 5NITED +INGDOMS CENTRAL BANK -ONETARY POLICIES ARE CENTERED ON ACHIEVING AN INFLATION TARGET DICTATED BY THE
4REASURY #HANCELLOR #URRENTLY THIS TARGET IS 20)8 2ETAIL 0RICE )NDEX INFLATION OF PERCENT 4HE CENTRAL BANK HAS THE POWER TO CHANGE INTEREST
RATES TO LEVELS THAT THEY BELIEVE WILL ALLOW THEM TO MEET THIS TARGET 4HE -0# HOLDS MONTHLY MEETINGS WHICH ARE CLOSELY FOLLOWED FOR ANNOUNCE
MENTS ON CHANGES IN MONETARY POLICY INCLUDING CHANGES IN THE INTEREST RATE BANK REPO RATE
4HE -0# PUBLISHES STATEMENTS AFTER EVERY MEETING ALONG WITH A QUARTERLY )NFLATION 2EPORT DETAILING THE -0#S FORECASTS FOR THE NEXT TWO YEARS OF
GROWTH AND INFLATION AND JUSTIFICATION FOR THEIR POLICY MOVEMENTS )N ADDITION ANOTHER PUBLICATION THE QUARTERLY BULLETIN PROVIDES INFORMATION ON
PAST MONETARY POLICY MOVEMENTS AND ANALYSIS OF THE INTERNATIONAL ECONOMIC ENVIRONMENT AND ITS IMPACTS ON THE 5+ ECONOMY !LL OF THESE REPORTS
CONTAIN DETAILED INFORMATION ON THE -0#S POLICIES AND BIASES FOR FUTURE POLICY MOVEMENTS
'&4 &OREIGN #URRENCIES 'UIDE 'REAT "RITAIN 5NITED +INGDOM P
&OREIGN #URRENCIES 'UIDE 'REAT "RITAIN 5NITED +INGDOM
-/.%4!29 &)3#!, 0/,)#9 -!+%23 CONTINUED
4HE MAIN POLICY TOOLS USED BY THE -0# AND "O% ARE
"ANK 2EPO 2ATE 4HIS IS THE KEY RATE USED IN MONETARY POLICY TO MEET THE 4REASURYS INFLATION TARGET 4HIS RATE IS SET FOR THE BANKS OWN OPERATIONS
IN THE MARKET SUCH AS THEIR SHORT TERM LENDING ACTIVITIES #HANGES TO THIS RATE AFFECT THE RATES SET BY THE COMMERCIAL BANKS FOR THEIR SAVERS AND
BORROWERS )N TURN THIS RATE WILL AFFECT SPENDING AND OUTPUT IN THE ECONOMY AND EVENTUALLY COSTS AND PRICES !N INCREASE IN THIS RATE WOULD IMPLY
AN ATTEMPT TO CURB INFLATION WHILE A DECREASE IN THIS RATE WOULD BE TO STIMULATE GROWTH AND EXPANSION
/PEN -ARKET /PERATIONS 4HE GOAL OF OPEN MARKET OPERATIONS IS TO IMPLEMENT THE CHANGES IN THE BANK REPO RATE WHILE ASSURING ADEQUATE
LIQUIDITY IN THE MARKET AND CONTINUED STABILITY IN THE BANKING SYSTEM 4HIS IS REFLECTIVE OF THE THREE MAIN OBJECTIVES OF THE "O% MAINTAINING THE
INTEGRITY AND VALUE OF THE CURRENCY MAINTAINING THE STABILITY OF THE FINANCIAL SYSTEM AND SEEKING TO ENSURE THE EFFECTIVENESS OF THE 5NITED
+INGDOMgS FINANCIAL SERVICES 4O ENSURE LIQUIDITY THE "ANK CONDUCTS DAILY OPEN MARKET OPERATIONS TO BUY OR SELL SHORT TERM GOVERNMENT FIXED
INCOME INSTRUMENTS )F THIS IS NOT SUFFICIENT TO MEET LIQUIDITY NEEDS THE "ANK WOULD ALSO CONDUCT ADDITIONAL OVERNIGHT OPERATIONS
)-0/24!.4 #(!2!#4%2)34)#3 /& 4(% "2)4)3( 0/5.$
'"0 IS VERY LIQUID
'"053$ IS ONE OF THE MOST LIQUID CURRENCIES IN THE WORLD WITH PERCENT OF ALL CURRENCY TRADING INVOLVING '"0 AS EITHER THE BASE OR COUNTER
CURRENCY /NE OF THE REASONS FOR THE CURRENCYS LIQUIDITY IS THE COUNTRYS HIGHLY DEVELOPED CAPITAL MARKETS -ANY FOREIGN INVESTORS SEEKING OPPORTU
NITIES OTHER THAN THE 53 HAVE SENT THEIR FUNDS TO THE 5+
'"0 CARRY TRADES
'"0 HAS ONE OF THE HIGHEST INTEREST RATES AMONG THE DEVELOPED COUNTRIES !USTRALIA AND .EW :EALAND HAVE HIGHER INTEREST RATES BUT THEIR FINANCIAL
MARKETS ARE NOT AS DEVELOPED !S A RESULT MANY INVESTORS WHO ARE CURRENTLY IN OR INTERESTED IN PARTICIPATING IN CARRY TRADES WILL BUY '"0
)NTEREST RATE DIFFERENTIALS BETWEEN 'ILTS AND FOREIGN BONDS ARE CLOSELY FOLLOWED
)NTEREST RATE DIFFERENTIALS BETWEEN 5+ 'ILTS53 4REASURIES AND 5+ 'ILTS'ERMAN "UNDS ARE WIDELY WATCHED BY FOREX MARKET PARTICIPANTS 4HESE
DIFFERENTIALS INDICATE HOW MUCH PREMIUM YIELD 5+ FIXED INCOME ASSETS ARE OFFERING OVER 53 AND %UROPEAN 'ERMAN "UNDS ARE USUALLY USED AS
A BAROMETER FOR %UROPEAN YIELD FIXED INCOME ASSETS OR VICE VERSA 4HIS DIFFERENTIAL PROVIDES TRADERS WITH INDICATIONS OF POTENTIAL CURRENCY
MOVEMENTS AS INVESTORS ARE ALWAYS LOOKING FOR ASSETS WITH THE HIGHEST YIELDS
%52/n34%2,).' &5452%3 #!. ')6% ).$)#!4)/.3 &/2 ).4%2%34 2!4% -/6%-%.43
3INCE THE 5+ INTEREST RATE OR BANK REPO RATE IS THE PRIMARY TOOL USED IN MONETARY POLICY IT IS IMPORTANT TO KEEP ABREAST OF POTENTIAL CHANGES TO
THE INTEREST RATE #OMMENTS FROM GOVERNMENT OFFICIALS ARE ONE WAY TO GAGE BIASES FOR POTENTIAL RATE CHANGES BUT THE "O% IS ONE OF THE ONLY CENTRAL
BANKS THAT REQUIRE MEMBERS OF THE -ONETARY 0OLICY #OMMITTEE TO PUBLISH THEIR VOTING RECORDS 4HIS PERSONAL ACCOUNTABILITY INDICATES THAT
COMMENTS BY INDIVIDUAL COMMITTEE MEMBERS REPRESENT THEIR OWN OPINIONS AND NOT THAT OF THE "O%
4HEREFORE IT IS NECESSARY TO LOOK FOR OTHER INDICATION OF POTENTIAL "O% RATE MOVEMENTS 4HREEnMONTH %UROnSTERLING FUTURES REFLECT MARKET EXPECTA
TIONS ON %UROnSTERLING INTEREST RATES THREE MONTHS INTO THE FUTURE 4HESE CONTRACTS ARE ALSO USEFUL IN PREDICTING 5+ INTEREST RATE CHANGES WHICH
WILL ULTIMATELY EFFECT THE '"0
'&4 &OREIGN #URRENCIES 'UIDE 'REAT "RITAIN 5NITED +INGDOM P
&OREIGN #URRENCIES 'UIDE 'REAT "RITAIN 5NITED +INGDOM
#/--%.43 "9 5+ 0/,)4)#)!.3 7),, !&&%#4 4(% %52/
!NY SPEECHES REMARKS ESPECIALLY FROM THE 0RIME -INISTER OR 4REASURY #HANCELLOR OR POLLS IN REGARDS TO THE %URO WILL AFFECT THE CURRENCY MARKETS
)NDICATION FOR ADOPTION OF THE %URO TENDS TO PUT DOWNWARD PRESSURE ON '"0 WHILE FURTHER OPPOSITION TO %URO ENTRY WILL TYPICALLY BOOST THE '"0
2EASON BEING THAT IN ORDER FOR THE '"0 TO COME IN LINE WITH THE %URO INTEREST RATES WOULD HAVE TO DECREASE SIGNIFICANTLY AT THE TIME OF THIS WRITING
5+ INTEREST RATES IS PERCENT VERSUS %URO INTEREST RATES OF PERCENT ! DECREASE IN THE INTEREST RATE WOULD INDUCE CARRY TRADE INVESTORS TO
CLOSE THEIR POSITIONS OR IN ESSENCE SELL '"0 '"0 WOULD ALSO DECLINE BECAUSE OF THE UNCERTAINTIES INVOLVED WITH %URO ADOPTION 4HE 5+ IS
PERFORMING VERY WELL UNDER THE DIRECTION OF ITS CURRENT MONETARY AUTHORITY 4HE %-5 IS CURRENTLY ENCOUNTERING MANY DIFFICULTIES WITH MEMBER
COUNTRIES BREACHING %-5 CRITERIA 7ITH ONE MONETARY AUTHORITY DICTATING COUNTRIES PLUS 5+ WOULD BE THE %-5 HAS YET TO PROVE THAT THEY
HAVE DEVELOPED A MONETARY POLICY SUITABLE FOR ALL MEMBER STATES
'"0 (!3 0/3)4)6% #/22%,!4)/. 7)4( %.%2'9 02)#%3
4HE 5+ HOUSES SOME OF THE LARGEST ENERGY COMPANIES IN THE WORLD INCLUDING "RITISH 0ETROLEUM %NERGY PRODUCTION REPRESENTS PERCENT OF
'$0 !S A RESULT THE '"0 HAS A POSITIVE CORRELATION WITH ENERGY PRICES 3PECIFICALLY SINCE MANY MEMBERS OF THE %5 IMPORT OIL FROM THE 5+ AS
OIL PRICES INCREASE THEY WILL HAVE TO BUY MORE '"0 TO FUND THEIR ENERGY PURCHASES )N ADDITION RISES IN THE PRICE OF OIL WILL ALSO BENEFIT THE EARNINGS
OF THE NATIONS ENERGY EXPORTERS
'"0 #2/33%3 %52'"0 6%2353 '"053$
!LTHOUGH THE '"053$ IS MORE LIQUID THAN %52'"0 THE %52'"0 IS TYPICALLY THE LEADING GAGE FOR '"0 STRENGTH 4HE REASON IS BECAUSE "RITAINgS
PRIMARY TRADE AND INVESTMENT PARTNER IS %UROPE !S A RESULT MOVES IN THE %52'"0 CROSS CAN FILTER INTO MOVEMENTS IN '"053$ /F COURSE
MOVEMENTS IN '"053$ WILL ALSO AFFECT THE %52'"0 RATE 4HE %52'"0 RATE SHOULD BE EXACTLY EQUAL TO THE RATE OF %5253$ DIVIDED BY
'"053$ 3MALL DIFFERENCES IN THESE RATES ARE OFTEN EXPLOITED BY MARKET PARTICIPANTS
)-0/24!.4 %#/./-)# ).$)#!4/23 &/2 4(% 5+
%MPLOYMENT 3ITUATION
2ETAIL 0RICE )NDEX 20)8
'ROSS $OMESTIC 0RODUCT '$0
)NDUSTRIAL 0RODUCTION
0URCHASING -ANAGERS )NDEX 0-)
5+ (OUSING 3TARTS
'&4 &OREIGN #URRENCIES 'UIDE 'REAT "RITAIN 5NITED +INGDOM P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE *APAN
30/4
#URRENCY *APANESE 9EN
#OMMON .AME 9EN
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ *09
!VERAGE "ID /FFER
PIPS
PIP *09
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
%#/./-)# /6%26)%7
*APAN IS THE THIRD LARGEST ECONOMY IN THE WORLD WITH '$0 VALUED AT OVER TRILLION 53$ IN BEHIND THE 53 AND THE ENTIRE
%UROZONE OR %-5 4HE COUNTRY IS ALSO ONE OF THE WORLDS LARGEST EXPORTERS AND IS RESPONSIBLE FOR OVER BILLION IN EXPORTS
PER YEAR -ANUFACTURING AND EXPORTS ACCOUNT FOR NEARLY PERCENT OF '$0 4HIS HAS RESULTED IN A CONSISTENT TRADE SURPLUS
WHICH CREATES AN INHERENT DEMAND FOR THE *09 DESPITE SEVERE STRUCTURAL DEFICIENCIES !SIDE FROM BEING AN EXPORTER *APAN IS
ALSO A LARGE IMPORTER OF RAW MATERIALS FOR THE PRODUCTION OF ITS GOODS 4HE PRIMARY TRADE PARTNERS FOR *APAN IN TERMS OF IMPORTS
AND EXPORTS ARE THE 53 AND #HINA #HINA IS BECOMING AN INCREASINGLY IMPORTANT TRADE PARTNER )N FACT #HINAS INEXPENSIVE
GOODS HAVE ALLOWED IT TO GAIN A LARGER SHARE OF *APANgS IMPORT MARKET
*!0!.%3% "!.+).' #2)3)3
)N THE S *APANS CAPITAL MARKET WAS ONE OF THE MOST ATTRACTIVE MARKETS FOR INTERNATIONAL INVESTORS SEEKING !SIAN INVESTMENT
OPPORTUNITIES 4HE COUNTRY HAD THE MOST DEVELOPED CAPITAL MARKETS IN THE REGION WHILE ITS BANKING SYSTEM WAS CONSIDERED TO
BE THE ONE OF STRONGEST IN THE WORLD !T THE SAME TIME THE COUNTRY ALSO EXPERIENCED ABOVEnTREND ECONOMIC GROWTH AND NEAR
ZERO INFLATION 4HIS RESULTED IN RAPID GROWTH EXPECTATIONS BOOSTED ASSET PRICES AND RAPID CREDIT EXPANSION THAT LED TO THE
DEVELOPMENT OF AN hASSET BUBBLEv
"ETWEEN AND THE ASSET BUBBLE COLLAPSED INDUCING A 53$ TRILLION FALL IN ASSET PRICES AS WELL AS A FALL IN REAL ESTATE
PRICES THAT ACCOUNTED FOR NEARLY PERCENT OF THE TOTAL DECLINE 4HE NET LOSS WAS WORTH TWO YEARS OF *APANgS NATIONAL OUTPUT
4HIS FALL IN ASSET PRICES SPARKED THE BANKING CRISIS IN *APAN WHICN BEGAN IN THE EARLY S AND DEVELOPED INTO A FULLnBLOWN
SYSTEMIC CRISIS IN FOLLOWED BY THE FAILURE OF A NUMBER OF HIGHnPROFILE FINANCIAL INSTITUTIONS -ANY OF THESE BANKS AND
FINANCIAL INSTITUTIONS EXTENDED LOANS TO THE BUILDERS AND REAL ESTATE DEVELOPERS AT THE HEIGHT OF THE ASSET BUBBLE IN THE S
USING THE LAND TO BE BUILT UPON AS THE COLLATERAL ! NUMBER OF THESE DEVELOPERS DEFAULTED AFTER THE ASSET BUBBLE COLLAPSE LEAVING
THE COUNTRYS BANKS SADDLED WITH BAD DEBT AND COLLATERAL WORTH SOMETIMES TO PERCENT LESS THAN WHEN THE LOANS WERE
TAKEN OUT $UE TO THE LARGE SIZE OF THESE BANKING INSTITUTIONS AND THEIR ROLE IN CORPORATE FUNDING THE CRISIS HAD PROFOUND EFFECTS
ON THE *APANESE AND GLOBAL ECONOMIES !S A RESULT ENORMOUS BAD DEBTS FALLING STOCK PRICES AND A COLLAPSING REAL ESTATE
SECTOR HAVE CRIPPLED THE *APANESE ECONOMY FOR ALMOST TWO DECADES
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE *APAN P
&OREIGN #URRENCIES 'UIDE *APAN
*!0!.%3% "!.+).' #2)3)3 CONTINUED
7ITH *APAN EXPERIENCING DEFLATIONARY CONDITIONS EACH SUCCEEDING MONTH OF DEFLATION RAISED THE REAL BURDEN OF THE BANKS OUTSTANDING DEBT 4O
DATE THE *APANESE -INISTRY OF &INANCE AND "ANK OF *APAN ARE STILL GRAPPLING WITH THIS PROBLEM !S A RESULT THEY HAVE ONLY INJECTED CAPITAL INTO
THESE AILING BANKS AS A SOLUTION TO PREVENT BANKRUPTCIES 3INCE THE BEGINNING OF THE CRISIS THEY HAVE HOPED THAT THE BANKS WOULD GROW THEIR WAY
BACK TO HEALTH
)N ADDITION TO THE BANKING CRISIS *APAN HAS THE HIGHEST DEBT LEVEL OF ALL OF THE INDUSTRIALIZED COUNTRIES AT MORE THAN PERCENT OF ITS '$0 $ETERIO
RATING FISCAL POSITIONS AND PUBLIC DEBT CONTINUING TO RISE *APAN HAS EXPERIENCED OVER YEARS OF STAGNATION POSING RISK OF A LIQUIDITY CRISIS
4HE BANKING SECTOR HAS BECOME HIGHLY DEPENDENT ON A GOVERNMENT BAILOUT !S A RESULT THE *09 IS VERY SENSITIVE TO POLITICAL DEVELOPMENTS SUCH
AS SPEECHES BY GOVERNMENT OFFICIALS WITH RHETORIC THAT MAY INDICATE POTENTIAL CHANGES IN MONETARY AND FISCAL POLICY ATTEMPTED BAILOUT PROPOSALS
AND ANY OTHER RUMORS
-/.%4!29 &)3#!, 0/,)#9 -!+%23
4HE "ANK OF *APAN "O* IS THE KEY MONETARY POLICYMAKING BODY IN *APAN )N THE *APANESE GOVERNMENT PASSED LAWS GIVING THE "O*
OPERATIONAL INDEPENDENCE FROM THE -INISTRY OF &INANCE -O& AND COMPLETE CONTROL OVER MONETARY POLICY (OWEVER DESPITE THE GOVERNMENTgS
ATTEMPTS TO DECENTRALIZE DECISIONnMAKING THE -O& STILL REMAINS IN CHARGE OF FOREIGN EXCHANGE POLICY 4HE "O* IS RESPONSIBLE FOR EXECUTING ALL
OFFICIAL *APANESE FOREIGN EXCHANGE TRANSACTIONS AT THE DIRECTION OF THE -O& -ONETARY POLICY MEETINGS ARE HELD TWICE A MONTH WITH BRIEFINGS AND
PRESS RELEASES PROVIDED IMMEDIATELY 4HE "O* ALSO PUBLISHES A MONTHLY REPORT ISSUED BY ITS POLICY BOARD AND A MONTHLY ECONOMIC REPORT 4HESE
REPORTS ARE IMPORTANT TO WATCH FOR CHANGES IN "O* SENTIMENT AND SIGNALS OF NEW MONETARY OR FISCAL POLICY MEASURES SINCE THE GOVERNMENT IS
CONSTANTLY TRYING TO DEVELOP INITIATIVES TO STIMULATE GROWTH
4HE -O& AND THE "O* ARE VERY IMPORTANT INSTITUTIONS WHO HAVE THE ABILITY TO AFFECT CURRENCY MOVEMENTS 3INCE THE -O& IS THE DIRECTOR OF FOREIGN
EXCHANGE INTERVENTIONS IT IS IMPORTANT TO WATCH AND KEEP ABREAST OF THE COMMENTS MADE FROM -O& OFFICIALS "EING AN EXPORT DRIVEN ECONOMY THE
-O& FAVORS A WEAK *09
4HE MOST POPULAR TOOL THAT THE "O* USES TO CONTROL MONETARY POLICY IS THE FOLLOWING
/PEN -ARKET /PERATIONS 4HESE ACTIVITIES ARE FOCUSED ON CONTROLLING THE UNCOLLATERALIZED OVERNIGHT CALL RATE 3INCE THE DISCOUNT RATE IS ZERO THE
"ANK OF *APAN CANNOT FURTHER DECREASE THIS RATE TO STIMULATE GROWTH CONSUMPTION OR LIQUIDITY 4HEREFORE IN ORDER TO MAINTAIN ZERO INTEREST RATES
THE "O* HAS TO MANIPULATE LIQUIDITY THROUGH OPEN MARKET OPERATIONS TARGETING ZERO INTEREST ON THE OVERNIGHT CALL RATE 4HEY MANIPULATE LIQUIDITY BY
THE OUTRIGHT BUYING OR SELLING OF BILLS REPOS OR *APANESE GOVERNMENT BONDS ! REPO TRANSACTION INVOLVES A CASH TAKER BORROWER SELLING SECURITIES
TO A CASH PROVIDER LENDER WHILE AGREEING TO REPURCHASE THE SECURITIES OF THE SAME TYPE AND QUANTITY AT A LATER DATE 4HIS STRUCTURE IS SIMILAR TO A
SECURED LOAN WHEREBY THE CASHnTAKER MUST PAY THE CASH PROVIDER INTEREST 2EPO TRANSACTIONS TEND TO HAVE VERY SHORT MATURITIES RANGING FROM ONE
DAY TO A FEW WEEKS
)N TERMS OF FISCAL POLICY THE "ANK OF *APAN IS CURRENTLY CONSIDERING A NUMBER OF METHODS TO DEAL WITH THEIR NONnPERFORMING LOANS 4HIS INCLUDES
INFLATION TARGETING NATIONALIZING A PORTION OF PRIVATE BANKS AND REPACKAGING THE BANKS BAD DEBT AND SELLING THEM AT A DISCOUNT .O POLICIES HAVE
BEEN DECIDED UPON BUT THE GOVERNMENT IS AGGRESSIVELY CONSIDERING ALL OF THESE AND OTHER ALTERNATIVES
'&4 &OREIGN #URRENCIES 'UIDE *APAN P
&OREIGN #URRENCIES 'UIDE *APAN
)-0/24!.4 #(!2!#4%2)34)#3 /& 4(% *09
0ROXY FOR !SIAN STRENGTH WEAKNESS
*APAN IS A PROXY FOR !SIAN STRENGTH BECAUSE THEY HAVE THE LARGEST '$0 IN !SIA 7ITH THE MOST DEVELOPED CAPITAL MARKETS *APAN
WAS ONCE THE PRIMARY DESTINATION FOR ALL INVESTORS WHO WANTED ACCESS INTO THE REGION *APAN ALSO CONDUCTS A SIGNIFICANT AMOUNT
OF TRADE WITH ITS !SIAN PARTNERS !S A RESULT ECONOMIC PROBLEMS OR POLITICAL INSTABILITY IN *APAN TEND TO SPILL OVER INTO THE OTHER
!SIAN COUNTRIES (OWEVER THIS SPILLOVER IS NOT ONEnSIDED %CONOMIC OR POLITICAL PROBLEMS IN OTHER !SIAN ECONOMIES CAN ALSO
HAVE DRAMATIC IMPACTS ON THE *APANESE ECONOMY AND HENCE *09 MOVEMENTS &OR EXAMPLE WITH .ORTH +OREAN POLITICAL
INSTABILITY *APAN AND THE *09 ARE AT THE GREATEST RISK OF THE ' COUNTRIES AS THEY HAVE THE STRONGEST TIES TO .ORTH +OREA
"ANK OF *APAN INTERVENTION PRACTICES
4HE "O* AND -O& ARE VERY ACTIVE PARTICIPANTS IN THE &8 MARKETS 4HAT IS THEY HAVE A LENGTHY HISTORY OF ENTERING THE &8 MARKETS
IF THEY ARE DISSATISFIED WITH THE CURRENT *09 LEVEL 0ERIODICALLY THEY RECEIVE INFORMATION ON LARGE HEDGE FUND POSITIONS FROM BANKS
AND LIKE TO INTERVENE WHEN SPECULATORS ARE ON THE OTHER SIDE OF THE MARKET ALLOWING THEM TO GET THE MOST hBANG FOR THE BUCKSv
4HERE ARE TYPICALLY THREE MAIN FACTORS BEHIND "O* AND -O& INTERVENTION
!MOUNT OF APPRECIATIONDEPRECIATION IN *09
#URRENT 53$*09 RATE
$IRECTION OF SPECULATIVE POSITIONS
*09 MOVEMENTS ARE SENSITIVE TO TIME &ISCAL YEAR END *APANESE TRADING HOURS
*09 CROSSES CAN BECOME VERY ACTIVE TOWARDS THE END OF THE *APANESE FISCAL YEAR -ARCH AS EXPORTERS REPATRIATE THEIR DOLLAR
DENOMINATED ASSETS 4HIS IS PARTICULARLY IMPORTANT FOR *APANESE BANKS BECAUSE THEY NEED TO REBUILD THEIR BALANCE SHEETS TO
MEET &3! GUIDELINES WHICH REQUIRE THE BANKS TO MARK TO MARKET THEIR SECURITY HOLDINGS
*APANESE TRADERS TEND TO TAKE HOUR LONG LUNCHES BETWEEN PMnPM %34 LEAVING ONLY A JUNIOR TRADER IN THE OFFICE 4HEREFORE
THE *APANESE LUNCHTIME CAN BE VOLATILE AS THE MARKET GETS VERY ILLIQUID $URING *APANESE AND ,ONDON HOURS THE *09 TENDS TO
MOVE FAIRLY ORDERLY UNLESS BREAKING ANNOUNCEMENTS OR GOVERNMENT OFFICIAL COMMENTS ARE MADE OR SURPRISING ECONOMIC DATA IS
RELEASED $URING 53 HOURS HOWEVER THE *09 TENDS TO HAVE HIGHER VOLATILITY
"ANKING STOCKS ARE WIDELY WATCHED
3INCE THE CRUX OF *APANgS ECONOMIC CRISIS STEMS FROM THE NON
PERFORMING LOANS .0, OF THE *APANESE BANKS BANKING STOCKS
ARE CLOSELY WATCHED BY &8 MARKET PARTICIPANTS !NY THREAT OF DEFAULT BY THESE BANKS DISAPPOINTING EARNINGS OR FURTHER REPORTS
OF SIGNIFICANT .0,S CAN INDICATE EVEN DEEPER PROBLEMS FOR THEY ECONOMY 4HEREFORE BANK STOCK MOVEMENTS CAN LEAD *09
MOVEMENTS
#ARRY TRADE EFFECTS
4HE POPULARITY OF CARRY TRADES HAS INCREASED IN RECENT YEARS AS INVESTORS ARE ACTIVELY SEEKING HIGH YIELDING ASSETS 7ITH *09
HAVING THE LOWEST INTEREST RATE OF ALL INDUSTRIALIZED COUNTRIES IT IS THE PRIMARY CURRENCY SOLD OR hBORROWEDv IN CARRY TRADES
)-0/24!.4 %#/./-)# ).$)#!4/23 &/2 *!0!.
'ROSS $OMESTIC 0RODUCT
4ANKAN 3URVEY
"ALANCE OF 0AYMENTS
%MPLOYMENT
)NDUSTRIAL 0RODUCTION
'&4 &OREIGN #URRENCIES 'UIDE *APAN P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE .EW :EALAND
30/4
#URRENCY .EW :EALAND $OLLAR
#OMMON .AME +IWI
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS .:$ 53$
!VERAGE "ID /FFER
PIPS
PIP 53$
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
%#/./-)# /6%26)%7
.EW :EALAND IS A VERY SMALL ECONOMY WITH '$0 VALUED AT APPROXIMATELY BILLION 53$ IN 4HE COUNTRYS POPULATION IS
ACTUALLY EQUIVALENT TO LESS THAN HALF OF THE POPULATION OF .EW 9ORK #ITY )T WAS ONCE ONE OF THE MOST REGULATED COUNTRIES WITHIN
THE /%#$ /RGANIZATION FOR %CONOMIC #OnOPERATION AND $EVELOPMENT BUT OVER THE PAST TWO DECADES HAS BEEN MOVING
TOWARDS AN OPEN MODERN AND STABLE ECONOMY
.EW :EALAND ALSO HAS HIGHLY DEVELOPED MANUFACTURING AND SERVICES SECTORS WITH THE AGRICULTURAL INDUSTRY DRIVING THE BULK OF
THE COUNTRYS EXPORTS 4HE ECONOMY IS STRONGLY TRADEnORIENTED WITH EXPORTS OF GOODS AND SERVICES REPRESENTING APPROXIMATELY
ONE THIRD OF '$0 $UE TO THE SMALL SIZE OF THE ECONOMY AND ITS SIGNIFICANT TRADE ACTIVITIES .EW :EALAND IS HIGHLY SENSITIVE TO
GLOBAL PERFORMANCE ESPECIALLY AS IT RELATES TO ITS KEY !SIAN TRADING PARTNERS !USTRALIA AND *APAN 4OGETHER !USTRALIA AND *APAN
REPRESENT PERCENT OF .EW :EALANDS TRADING ACTIVITY $URING THE !SIAN #RISIS .EW :EALANDS '$0 CONTRACTED BY PERCENT
AS A RESULT OF REDUCED DEMAND FOR EXPORTS AND TWO CONSECUTIVE DROUGHTS FROM REDUCED AGRICULTURAL AND RELATED PRODUCTION
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE .EW :EALAND P
&OREIGN #URRENCIES 'UIDE .EW :EALAND
-/.%4!29 &)3#!, 0/,)#9 -!+%23
4HE 2ESERVE "ANK OF .EW :EALAND 2".: IS THE MONETARY POLICY AUTHORITY OF .EW :EALAND -EETINGS ON MONETARY POLICY OCCUR
EIGHT TIMES A YEAR OR APPROXIMATELY EVERY SIX WEEKS 5NLIKE MOST OTHER CENTRAL BANKS THE DECISION FOR RATE CHANGES RESTS
ULTIMATELY ON THE BANKS GOVERNOR 4HE CURRENT POLICY TARGET AGREEMENTS SET BY THE MINISTER AND THE GOVERNOR FOCUS ON MAINTAIN
ING POLICY STABILITY AND AVOIDING UNNECESSARY INSTABILITY IN OUTPUT INTEREST RATES AND THE EXCHANGE RATE 0RICE STABILITY REFERS TO
MAINTAINING THE ANNUAL CONSUMER PRICE INDEX #0) INFLATION AT PERCENT )F THE 2".: DOES NOT MEET THIS TARGET THE GOVERN
MENT HAS THE ABILITY TO DISMISS THE GOVERNOR OF THE 2".: THOUGH THIS IS RARELY DONE 4HIS SERVES AS A STRONG INCENTIVE FOR THE
2".: TO MEETS ITS INFLATION TARGET 4HE MOST COMMON TOOLS USED BY THE 2".: TO IMPLEMENT MONETARY POLICY CHANGES ARE THE
FOLLOWING
/FFICIAL #ASH 2ATE /#2 4HIS IS THE RATE SET BY THE 2".: TO IMPLEMENT MONETARY POLICY 4HE BANK LENDS OVERNIGHT CASH AT
BASIS POINTS ABOVE THE /#2 RATE AND RECEIVES DEPOSITS OR PAYS INTEREST AT BASIS POINTS BELOW THIS RATE "Y CONTROLLING THE
COST OF LIQUIDITY FOR COMMERCIAL BANKS THE 2".: CAN INFLUENCE THE INTEREST RATES OFFERED TO INDIVIDUALS AND CORPORATIONS 4HIS
EFFECTIVELY CREATES A BASIS POINT CORRIDOR THAT BOUNDS THE INTERBANK OVERNIGHT RATE "ANKS OFFERING FUNDS ABOVE THE UPPER
BOUND WILL ATTRACT FEW TAKERS BECAUSE FUNDS CAN BE BORROWED FOR A LOWER COST FROM THE 2".: !LSO BANKS OFFERING RATES BELOW
THE LOWER BOUND WILL ALSO ATTRACT FEW TAKERS BECAUSE THEY ARE OFFERING LOWER YIELDS THAN THE 2".: 4HE OFFICIAL CASH RATE IS
REVIEWED AND MANIPULATED TO MAINTAIN ECONOMIC STABILITY
/PEN -ARKET /PERATIONS 4HIS IS USED TO MEET THE CASH TARGET 4HE CASH TARGET IS THE TARGETED AMOUNT OF RESERVES HELD BY
REGISTERED BANKS 4HE CURRENT TARGET IS .: MILLION 4HE 2".: PREPARES FORECASTS OF DAILY FLUCTUATIONS ON THE CASH TARGET AND
THEN WILL USE THESE FORECASTS TO DETERMINE THE AMOUNT OF FUNDS TO INJECT OR WITHDRAW IN ORDER TO MEET THE CASH TARGET
)-0/24!.4 #(!2!#4%2)34)#3 /& 4(% .%7 :%!,!.$ $/,,!2
3TRONG CORRELATION WITH !5$COMPETITION WITH !USTRALIA
!USTRALIA IS .EW :EALANDS LARGEST TRADING PARTNER 4HIS TIED WITH THE PROXIMITY OF THE COUNTRIES AND THE FACT THAT .EW :EALAND IS
HIGHLY TRADEnORIENTED CREATES STRONG TIES BETWEEN THE TWO COUNTRIES 7HEN THE !USTRALIAN ECONOMY DOES WELL AND !USTRALIAN
CORPORATIONS INCREASE THEIR IMPORTING ACTIVITIES .EW :EALAND IS ONE OF THE FIRST TO BENEFIT )N FACT SINCE THE !USTRALIAN
ECONOMY HAS DONE VERY WELL WITH FOR EXAMPLE A BOOMING HOUSING MARKET THAT CREATED A NEED TO INCREASE IMPORTS OF BUILDING
PRODUCTS !S A RESULT THIS STRENGTH TRANSLATED INTO !USTRALIA IMPORTING PERCENT MORE GOODS FROM .EW :EALAND BETWEEN
AND
#OMMODITYnLINKED CURRENCY
.EW :EALAND IS AN EXPORT DRIVEN ECONOMY WITH COMMODITIES REPRESENTING OVER PERCENT OF THE COUNTRYgS EXPORTS !S A RESULT
THE CURRENCY HAS A PERCENT POSITIVE CORRELATION WITH COMMODITY PRICES !S COMMODITY PRICES INCREASE THE .:$ WILL ALSO
APPRECIATE 4HE CORRELATION BETWEEN !5$ AND .:$ ALSO CONTRIBUTES TO THE .:$gS STATUS AS A COMMODITYnLINKED CURRENCY !5$
ECONOMIC PERFORMANCE IS ALSO HIGHLY CORRELATED WITH COMMODITY PRICES 4HEREFORE AS COMMODITY PRICES INCREASE THE !USTRA
LIAN ECONOMY BENEFITS TRANSLATING INTO INCREASE ACTIVITY IN ALL ASPECTS OF THE COUNTRYgS OPERATIONS INCLUDING TRADE WITH .EW
:EALAND
#ARRY TRADES
7ITH THE HIGHEST INTEREST RATE OF THE INDUSTRIALIZED COUNTRIES THE .:$ HAS BEEN ONE OF THE MOST POPULAR CURRENCIES TO BUY FOR
CARRY TRADES
)NTEREST RATE DIFFERENTIALS BETWEEN THE CASH RATES OF !USTRALIA AND THE SHORTnTERM INTEREST RATE YIELDS OF OTHER INDUSTRIALIZED
COUNTRIES ARE CLOSELY FOLLOWED
)NTEREST RATE CAN BE GOOD INDICATORS OF POTENTIAL MONEY FLOWS AS THEY INDICATE HOW MUCH PREMIUM YIELD .:$ SHORTnTERM FIXED
INCOME ASSETS ARE OFFERING OVER FOREIGN SHORTnTERM FIXED INCOME ASSETS OR VICE VERSA 4HIS DIFFERENTIAL PROVIDES TRADERS WITH
INDICATIONS OF POTENTIAL CURRENCY MOVEMENTS AS INVESTORS ARE ALWAYS LOOKING FOR ASSETS WITH THE HIGHEST YIELDS
'&4 &OREIGN #URRENCIES 'UIDE .EW :EALAND P
&OREIGN #URRENCIES 'UIDE .EW :EALAND
0/05,!4)/. -)'2!4)/.
.EW :EALAND HAS A VERY SMALL POPULATION 4HEREFORE INCREASES IN MIGRATION INTO THE COUNTRY CAN HAVE SIGNIFICANT EFFECTS ON THE
ECONOMY &ROM TO THE POPULATION OF .EW :EALAND INCREASED BY PEOPLE VERSUS AN INCREASE OF BETWEEN
AND 4HIS STRONG POPULATION MIGRATION INTO .EW :EALAND HAS CONTRIBUTED SIGNIFICANTLY TO THE PERFORMANCE OF THE
ECONOMY BECAUSE AS THE POPULATION INCREASES THE DEMAND FOR HOUSEHOLD GOODS INCREASES LEADING TO AN INCREASE IN OVERALL
CONSUMER CONSUMPTION
3INCE THE BULK OF .EW :EALANDS EXPORTS ARE COMMODITIES THE COUNTRYS '$0 IS HIGHLY SENSITIVE TO SEVERE WEATHER CONDITIONS
THAT MAY DAMAGE THE COUNTRYS FARMING ACTIVITIES )N DROUGHTS COST THE COUNTRY OVER -- )N ADDITION DROUGHTS ARE ALSO
VERY FREQUENT IN !USTRALIA .EW :EALANDS LARGEST TRADING PARTNER 4HESE DROUGHTS HAVE COST !USTRALIA UP TO PERCENT IN '$0
WHICH ALSO TRANSLATED INTO A NEGATIVE AFFECT ON THE .EW :EALAND ECONOMY
)-0/24!.4 %#/./-)# ).$)#!4/23 &/2 .%7 :%!,!.$
'ROSS $OMESTIC 0RODUCT '$0
#ONSUMER 0RICE )NDEX #0)
0RODUCER 0RICE )NDEX 00)
"ALANCE OF 'OODS AND 3ERVICES
0RIVATE #ONSUMPTION
'&4 &OREIGN #URRENCIES 'UIDE .EW :EALAND P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE 3WITZERLAND
30/4
#URRENCY 3WITZERLAND &RANC
#OMMON .AME 3WISS
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ #(&
!VERAGE "ID /FFER
PIPS
PIP #(&
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
%#/./-)# /6%26)%7
3WITZERLAND IS THE TH LARGEST ECONOMY IN THE WORLD WITH '$0 VALUED OF MORE THAN BILLION 53$ IN 4HE ECONOMY IS
RELATIVELY SMALL BUT IT IS ONE OF THE WEALTHIEST IN THE WORLD ON A '$0 PER CAPITA BASIS 4HE CONFIDENTIALITY OFFERED BY THE 3WISS
BANKING SYSTEM COUPLED WITH THE COUNTRYgS LENGTHY HISTORY OF POLITICAL NEUTRALITY HAS CREATED A SAFE HAVEN REPUTATION FOR THE
COUNTRY AND ITS CURRENCY !S A RESULT 3WITZERLAND IS THE WORLDgS LARGEST DESTINATION FOR OFFSHORE CAPITAL 4HE COUNTRY HOLDS OVER
53 TRILLION IN OFFSHORE ASSETS AND IS ESTIMATED TO ATTRACT MORE THAN PERCENT OF THE WORLDgS PRIVATE WEALTHnMANAGEMENT
BUSINESS 4HIS HAS CREATED A LARGE AND HIGHLY ADVANCED BANKING AND INSURANCE INDUSTRY THAT EMPLOYS AT LEAST PERCENT OF THE
POPULATION AND COMPRISES MORE THAN PERCENT OF THE TOTAL '$0 3INCE 3WITZERLANDgS FINANCIAL INDUSTRY THRIVES ON ITS SAFE HAVEN
STATUS AND RENOWNED CONFIDENTIALITY CAPITAL FLOWS TEND TO DRIVE THE ECONOMY DURING TIMES OF GLOBAL RISK AVERSION WHILE TRADE
FLOWS DRIVE THE ECONOMY DURING A RISKnSEEKING ENVIRONMENT 4HEREFORE TRADE FLOWS ARE IMPORTANT WITH NEARLY TWO THIRDS OF ALL
TRADE CONDUCTED WITH %UROPE
-/.%4!29 &)3#!, 0/,)#9 -!+%23
4HE 3WISS .ATIONAL "ANK 3." IS THE MONETARY POLICY AUTHORITY OF 3WITZERLAND !LL DECISIONS ARE BASED ON A CONSENSUS VOTE
4HE 3." BOARD REVIEWS MONETARY POLICY AT LEAST ONCE A QUARTER BUT DECISIONS ON MONETARY POLICY CAN BE MADE AND ANNOUNCED
AT ANY POINT IN TIME 5NLIKE MOST OTHER CENTRAL BANKS THE 3." DOES NOT SET ONE OFFICIAL INTEREST RATE TARGET BUT INSTEAD SETS A
TARGET RANGE FOR THEIR THREE MONTH 3WISS ,)"/2 RATE ,ONDON )NTERBANK /FFER 2ATE 4HE 3WISS ,)"/2 RATE IS SET BASED UPON THE
NEED FOR MAINTAINING AN INFLATION TARGET OF LESS THAN PERCENT INFLATION PER YEAR
4HE 3." ALSO CLOSELY MONITORS EXCHANGE RATES AS EXCESSIVE STRENGTH IN THE 3WISS FRANC CAN CAUSE INFLATIONARY CONDITIONS 4HIS
IS ESPECIALLY TRUE IN ENVIRONMENTS OF GLOBAL RISK AVERSION AS CAPITAL FLOWS INTO 3WITZERLAND INCREASES SIGNIFICANTLY DURING THOSE
TIMES !S A RESULT THE 3." TYPICALLY FAVORS A WEAK FRANC AND IS NOT HESITANT TO USE INTERVENTION AS LIQUIDITY TOOL 3." OFFICIALS
INTERVENE IN THE FRANC USING A VARIETY OF METHODS INCLUDING VERBAL REMARKS ON LIQUIDITY MONEY SUPPLY AND THE CURRENCY
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE 3WITZERLAND P
&OREIGN #URRENCIES 'UIDE 3WITZERLAND
-/.%4!29 &)3#!, 0/,)#9 -!+%23 CONTINUED
4HE MOST COMMONLY USED TOOLS BY THE 3." TO IMPLEMENT MONETARY POLICY INCLUDE THE FOLLOWING
4ARGET )NTEREST 2ATE 2ANGE 4HE 3." IMPLEMENTS MONETARY POLICY BY SETTING A TARGET RANGE FOR THEIR THREEnMONTH INTEREST RATE
THE 3WISS ,)"/2 RATE 4HIS RANGE TYPICALLY HAS A BASIS POINT SPREAD AND IS REVISED AT LEAST ONCE EVERY QUARTER 4HIS RATE
IS USED AS THEIR TARGET BECAUSE IT IS THE MOST IMPORTANT MONEY MARKET RATE FOR 3WISS FRANC INVESTMENTS #HANGES TO THIS TARGET
ARE ACCOMPANIED WITH A CLEAR EXPLANATION REGARDING THE CHANGES IN THE ECONOMIC ENVIRONMENT
/PEN -ARKET /PERATIONS 2EPO TRANSACTIONS ARE THE 3."S MAJOR MONETARY POLICY INSTRUMENT ! REPO TRANSACTION INVOLVES A
CASH TAKER BORROWER SELLING SECURITIES TO A CASH PROVIDER LENDER WHILE AGREEING TO REPURCHASE THE SECURITIES OF THE SAME TYPE
AND QUANTITY AT A LATER DATE 4HIS STRUCTURE IS SIMILAR TO A SECURED LOAN WHEREBY THE CASH TAKER MUST PAY THE CASH PROVIDER
INTEREST 4HESE REPO TRANSACTIONS TEND TO HAVE VERY SHORT MATURITIES RANGING FROM ONE DAY TO A FEW WEEKS 4HE 3." USES THESE
REPO TRANSACTIONS TO MANIPULATE UNDESIRABLE MOVES IN THE THREE MONTH ,)"/2 RATE 4O PREVENT INCREASES IN THE THREE MONTH
,)"/2 RATE ABOVE THE 3."S TARGET THE BANK WOULD SUPPLY THE COMMERCIAL BANKS WITH ADDITIONAL LIQUIDITY THROUGH REPO TRANSAC
TIONS AT LOWER REPO RATES AND IN ESSENCE CREATE ADDITIONAL LIQUIDITY #ONVERSELY THE 3." CAN REDUCE LIQUIDITY OR INDUCE
INCREASES IN THE THREE MONTH ,)"/2 RATE BY INCREASING REPO RATES
4HE 3." PUBLISHES A QUARTERLY BULLETIN WITH A DETAILED ASSESSMENT OF THE CURRENT STATE OF THE ECONOMY AND A REVIEW OF MONETARY
POLICY )N ADDITION A MONTHLY BULLETIN IS ALSO PUBLISHED THAT CONTAINS A SHORT REVIEW OF THE 3."S ECONOMIC DEVELOPMENTS 4HESE
REPORTS ARE IMPORTANT TO WATCH BECAUSE THEY MAY CONTAIN INFORMATION ON CHANGES IN THE 3."S ASSESSMENT OF THE CURRENT
DOMESTIC SITUATION
)-0/24!.4 #(!2!#4%2)34)#3 /& 4(% 37)33 &2!.#
3AFE (AVEN 3TATUS
4HE KEY ADVANTAGES OF 3WITZERLAND ARE ITS SAFE
HAVEN STATUS AND THE SECRECY OF ITS BANKING SYSTEM 4HE 3WISS FRANC MOVES
PRIMARILY ON EXTERNAL EVENTS RATHER THAN DOMESTIC ECONOMIC CONDITIONS 4HAT IS AS MENTIONED EARLIER DUE TO ITS POLITICAL NEUTRAL
ITY THE FRANC IS CONSIDERED THE WORLDgS PREMIER SAFE
HAVEN CURRENCY 4HEREFORE IN TIMES OF GLOBAL INSTABILITY ANDOR UNCERTAINTY
INVESTORS TEND TO BE MORE CONCERNED WITH CAPITAL RETENTION THAN APPRECIATION $URING SUCH TIMES FUNDS WILL FLOW INTO 3WITZERLAND
AND CAUSE THE 3WISS FRANC TO APPRECIATE
3WISS &RANC IS CORRELATED WITH GOLD
3WITZERLAND IS THE WORLDS FOURTH LARGEST OFFICIAL HOLDER OF GOLD 4HIS IS DUE TO THE FACT THAT THE 3WISS CONSTITUTION USE TO HAVE A
MANDATE REQUIRING THE CURRENCY TO BE BACKED PERCENT WITH GOLD RESERVES 4HE LINK TO GOLD REMAINS IN THE MINDS OF 3WISS
INVESTORS !S A RESULT THE 3WISS FRANC HAS CLOSE TO AN PERCENT POSITIVE CORRELATION WITH GOLD 4HEREFORE IF THE GOLD PRICE APPRE
CIATES THE 3WISS FRANC HAS A HIGH LIKELIHOOD OF APPRECIATING AS WELL )N ADDITION SINCE GOLD IS ALSO VIEWED AS THE ULTIMATE SAFE
HAVEN FORM OF MONEY GOLD AND THE 3WISS FRANC SHOULD CONTINUE TO BENEFIT AS GLOBAL ECONOMIC AND GEOPOLITICAL UNCERTAINTY
CONTINUES
#ARRY TRADES EFFECTS
4HE POPULARITY OF CARRY TRADES HAS INCREASED IN RECENT YEARS AS INVESTORS ARE ACTIVELY SEEKING HIGH
YIELDING ASSETS 7ITH #(&
HAVING ONE OF THE LOWEST INTEREST RATES OF ALL INDUSTRIALIZED COUNTRIES IT IS ONE OF THE PRIMARY CURRENCIES SOLD OR hBORROWEDv IN
CARRY TRADES
)NTEREST RATE DIFFERENTIALS BETWEEN %URO AND 3WISS FUTURES AND FOREIGN INTEREST RATE FUTURES ARE CLOSELY FOLLOWED
)NTEREST RATE DIFFERENTIALS ARE GOOD INDICATORS OF POTENTIAL MONEY FLOWS SINCE THEY INDICATE HOW MUCH YIELD PREMIUM 53 FIXED
INCOME ASSETS ARE OFFERING OVER 3WISS FIXED INCOME ASSETS OR VICE VERSA 4HIS DIFFERENTIAL PROVIDES TRADERS WITH INDICATIONS OF
POTENTIAL CURRENCY MOVEMENTS AS INVESTORS ARE ALWAYS LOOKING FOR ASSETS WITH THE HIGHEST YIELDS
'&4 &OREIGN #URRENCIES 'UIDE 3WITZERLAND P
&OREIGN #URRENCIES 'UIDE 3WITZERLAND
)-0/24!.4 #(!2!#4%2)34)#3 /& 4(% 37)33 &2!.# CONTINUED
0OTENTIAL CHANGES IN BANKING REGULATIONS NEGATIVELY WEIGH ON #(&
4HE %UROPEAN 5NION HAS RECENTLY BEEN PUTTING SIGNIFICANT PRESSURE ON 3WITZERLAND TO RELAX THE CONFIDENTIALITY OF THEIR BANKING
SYSTEM AND TO INCREASE TRANSPARENCY OF THEIR CUSTOMERS ACCOUNTS 3WITZERLAND IS CURRENTLY GRAPPLING WITH THIS ISSUE BECAUSE
THE CONFIDENTIALITY OF THEIR CUSTOMERS ACCOUNTS IS THE CORE STRENGTH OF THEIR BANKING SYSTEM !NY NEWS OR TALK OF CHANGING
BANKING REGULATIONS WILL LIKELY AFFECT 3WITZERLANDgS ECONOMY AND THE 3WISS FRANC
-ERGERS AND ACQUISITIONS ARE COMMON IN 3WITZERLANDgS BANKING AND INSURANCE SECTORS
3WITZERLANDgS PRIMARY INDUSTRY IS BANKING AND FINANCE 7ITH THE RECENT CONSOLIDATION IN THE OVERALL INDUSTRY MERGER AND ACQUISI
TION ACTIVITIES ARE VERY COMMON 4HESE -! ACTIVITIES CAN HAVE SIGNIFICANT INFLUENCE ON #(& SPOT PRICES )F FOREIGN FIRMS
PURCHASE 3WISS BANKS OR INSURANCE COMPANIES THEY WILL NEED TO BUY #(& AND SELL THEIR LOCAL CURRENCY )F 3WISS BANKS PURCHASE
FOREIGN FIRMS THEY WILL NEED TO SELL #(& AND BUY THE FOREIGN CURRENCY
#ROSS CURRENCY CHARACTERISTICS%52#(& VERSUS 53$#(&
4HE %52#(& IS THE MOST COMMONLY TRADED CURRENCY FOR TRADERS WHO WANT TO PARTICIPATE IN #(& MOVEMENTS 4HE 53$#(& HAS
HIGHER ILLIQUIDITY AND VOLATILITY (OWEVER DAYTRADERS MAY TEND TO FAVOR 53$#(& OVER %52#(& BECAUSE OF ITS VOLATILE
MOVEMENTS )N ACTUALITY THE 53$#(& IS ONLY A SYNTHETIC CURRENCY DERIVED FROM %5253$ AND %52#(& -ARKETnMAKERS OR
PROFESSIONAL TRADERS TEND TO USE THOSE PAIRS AS LEADING INDICATORS FOR TRADING 53$#(& OR TO PRICE THE CURRENT 53$#(& LEVEL
WHEN THE CURRENCY PAIR IS ILLIQUID 4HEORETICALLY THE 53$#(& RATE SHOULD BE EXACTLY EQUAL TO %52#(& DIVIDED BY %5253$
/NLY DURING TIMES OF SEVERE GLOBAL RISK AVERSION LIKE THE EVENTS THAT TOOK PLACE IN THE 53 ON 3EPTEMBER WILL THE
53$#(& DEVELOP A MARKET OF ITS OWN 2EGARDLESS ANY SMALL DIFFERENCES IN THESE RATES ARE QUICKLY EXPLOITED BY MARKET PARTICI
PANTS
)-0/24!.4 %#/./-)# ).$)#!4/23 &/2 37)4:%2,!.$
#ONSUMER 0RICE )NDEX #0)
'ROSS $OMESTIC 0RODUCT '$0
"ALANCE OF 0AYMENTS
- MEASURE OF MONETARY SUPPLY TRACKED BY THE .EW 9ORK &EDERAL 2ESERVE "ANK AND REPORTED EVERY 4HURSDAY
5NEMPLOYMENT
0RODUCTION )NDEX )NDUSTRIAL 0RODUCTION
'&4 &OREIGN #URRENCIES 'UIDE 3WITZERLAND P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE 5NITED 3TATES
30/4
#URRENCY 53 $OLLAR
#OMMON .AME $OLLAR
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ *09 %52 53$
!VERAGE "ID /FFER
PIPS
PIP *09 53$
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
%#/./-)# /6%26)%7
4HE 5NITED 3TATES IS THE WORLDS LEADING ECONOMIC POWER WITH '$0 VALUED AT OVER TRILLION 53$ IN 4HIS IS THE HIGHEST
'$0 IN THE WORLD AND BASED UPON PURCHASING POWER PARITY 000 IT IS THREE TIMES THE SIZE OF *APANS OUTPUT FIVE TIMES THE SIZE
OF 'ERMANYS AND SEVEN TIMES THE SIZE OF THE 5NITED +INGDOMS '$0S 7ITH THE 53 HAVING THE MOST LIQUID EQUITY AND FIXED
INCOME MARKETS IN THE WORLD FOREIGN INVESTORS HAVE CONSISTENTLY INCREASED THEIR PURCHASES OF 53 ASSETS &OREIGN DIRECT INVEST
MENTS REPRESENT APPROXIMATELY PERCENT OF TOTAL GLOBAL NET INFLOWS FOR 53 /N A NET BASIS THE 53 ABSORBS PERCENT OF TOTAL
FOREIGN SAVINGS
4HE IMPORT AND EXPORT VOLUME OF THE 53 ALSO EXCEEDS THAT OF ANY OTHER COUNTRY /N A NETTED BASIS THE 53 IS RUNNING A VERY
LARGE TRADE DEFICIT OF NEARLY BLN 4HIS IS BECAUSE THE 53 IS THE LARGEST TRADING PARTNER FOR MOST COUNTRIES REPRESENTING
PERCENT OF TOTAL WORLD TRADE
4HIS LARGE ABSOLUTE NUMBER INDICATES THAT THE 53 IS HEAVILY RELIANT ON CAPITAL FLOWS AND THE DOLLAR IS VERY SENSITIVE TO CHANGES
IN THOSE FLOWS )N FACT IN ORDER TO PREVENT A FURTHER DECLINE IN THE 53$ AS A RESULT OF TRADE THE 53 WOULD NEED TO ATTRACT CLOSE
TO BN IN CAPITAL INFLOWS PER DAY
4HE 53 IS PRIMARILY A SERVICEnORIENTED COUNTRY WITH NEARLY PERCENT OF THEIR '$0 COMING FROM REAL ESTATE TRANSPORTATION
FINANCE HEALTHCARE AND BUSINESS SERVICES 7ITH THE ADVENT OF NEW TECHNOLOGY SUCH AS THE INTERNET PRODUCTIVITY IN THE 53 HAS
CONSISTENTLY INCREASED 4HIS IS PARTICULARLY INTERESTING IN LIGHT OF THE 53S RECENT ECONOMIC DOWNTURN BECAUSE MANY ECONO
MISTS ARGUE THAT DESPITE THE CURRENT DOWNTURN INCREASED PRODUCTIVITY INDICATES THAT WE ARE IN A hNEW ECONOMYv 4HE IMPORTANCE
OF THIS COMMENT IS THAT IF THE 53 IS INDEED IN A hNEW ECONOMY v PREVIOUS REACTIONS TO RECESSIONARY CONDITIONS MAY NOT REPEAT
THEMSELVES IN THIS DOWNTURN
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE 5NITED 3TATES P
&OREIGN #URRENCIES 'UIDE 5NITED 3TATES
-/.%4!29 &)3#!, 0/,)#9 -!+%23
4HE &EDERAL 2ESERVE "OARD &ED IS THE CENTRAL BANK OF THE 5NITED 3TATES 4HE &ED IS RESPONSIBLE FOR SETTING AND IMPLEMENTING
MONETARY POLICY 4HE &/-# HOLDS MEETINGS PER YEAR THAT ARE WIDELY WATCHED FOR INTEREST RATE ANNOUNCEMENTS OR CHANGES IN
GROWTH EXPECTATIONS
4HE &EDERAL 2ESERVE ISSUES A BIANNUAL MONETARY POLICY REPORT IN &EBRUARY AND *ULY FOLLOWED BY THE (UMPHREYn(AWKINS
TESTIMONY WHERE THE &EDERAL 2ESERVE #HAIRMAN RESPONDS TO QUESTIONS FROM THE #ONGRESS AND THE "ANKING #OMMITTEES THE -0
REPORT BEING PUBLISHED 4HIS REPORT IS IMPORTANT TO WATCH BECAUSE IT CONTAINS THE &/-# FORECASTS FOR '$0 GROWTH INFLATION AND
UNEMPLOYMENT
4HE &ED UNLIKE MOST OTHER CENTRAL BANKS HAS A MANDATE OR hLONGnRUN OBJECTIVESv OF PRICE STABILITY AND SUSTAINABLE ECONOMIC
GROWTH )N ORDER TO ADHERE TO THESE GOALS THE &ED HAS TO USE MONETARY POLICY TO LIMIT INFLATION UNEMPLOYMENT AND TO ACHIEVE
BALANCED GROWTH 4HE MOST POPULAR TOOLS THAT THE &ED USES TO CONTROL MONETARY POLICY INCLUDE THE FOLLOWING
/PEN -ARKET /PERATIONS 4HESE INVOLVE &ED PURCHASES OF GOVERNMENT SECURITIES INCLUDING 4REASURY BILLS NOTES AND BONDS
4HIS USED TO BE ONE OF THE MOST POPULAR METHODS FOR THE &ED TO SIGNAL AND IMPLEMENT POLICY CHANGES !S THE &ED PURCHASES
GOVERNMENT SECURITIES THEY IN EFFECT DECREASE INTEREST RATES 7HEN THE &ED SELLS GOVERNMENT SECURITIES INTEREST RATES INCREASE
&ED &UNDS 4ARGET 4HE &&4 IS THE INTEREST RATE THAT IS THE KEY POLICY TARGET OF THE &ED )T IS IN ESSENCE RATE THAT THE 53 CENTRAL
BANK AND THE &ED CHARGES ON OVERNIGHT LOANS BETWEEN BANKS 4HE &ED TENDS TO INCREASE THIS RATE TO CURB INFLATION OR DECREASE
THIS RATE TO PROMOTE GROWTH AND CONSUMPTION #HANGES IN THIS RATE TEND TO IMPLY MAJOR CHANGES IN POLICY AND TYPICALLY HAVE
LARGE RAMIFICATIONS FOR GLOBAL FIXED INCOME AND EQUITY MARKETS
4HE 53 4REASURY IS RESPONSIBLE FOR ISSUING GOVERNMENT DEBT AND FOR MAKING FISCAL POLICY DECISIONS &ISCAL POLICY DECISIONS
INCLUDE DETERMINING THE APPROPRIATE LEVEL OF TAXES AND GOVERNMENT SPENDING 4HE 53 4REASURY IS THE ACTUAL GOVERNMENT BODY
THAT DETERMINES DOLLAR POLICY 4HE 53 4REASURY ULTIMATELY INSTRUCTS THE .9 &EDERAL 2ESERVE "OARD WHETHER TO INTERVENE IN THE
FOREIGN EXCHANGE MARKET BY PHYSICALLY SELLING OR BUYING 53$ TO AFFECT THE CURRENCYgS VALUE 4HEREFORE THE 4REASURYS VIEW ON
DOLLAR POLICY AND CHANGES TO THAT VIEW ARE VERY IMPORTANT TO THE CURRENCY MARKET /VER THE COURSE OF THE PAST FEW DECADES THE
4REASURY AND &ED OFFICIALS HAVE MAINTAINED A hSTRONG DOLLARv BIAS
)-0/24!.4 #(!2!#4%2)34)#3 /& 4(% 53 $/,,!2
-ORE THAN PERCENT OF ALL CURRENCY DEALS INVOLVE THE 53$
0RIOR TO 3EPTEMBER THE 53$ WAS CONSIDERED ONE THE WORLDgS PREMIER hSAFEnHAVENv CURRENCIES
(OWEVER POSTn3EPT FOREIGN HOLDERS OF 53 ASSETS INCLUDING CENTRAL BANKS HAVE PARED THEIR 53$ HOLDINGS AS A RESULT OF
INCREASED 53 UNCERTAINTY AND DECREASED INTEREST RATES
'OLD AND 53$ TEND TO HAVE INVERSE RELATIONSHIPS
4HIS INVERSE RELATIONSHIP IS DEVELOPED AS A RESULT OF THE FACT THAT GOLD IS MEASURED IN DOLLARS 2ECENT 53$ DEPRECIATION DUE TO
GLOBAL UNCERTAINTY HAS BEEN THE PRIMARY REASON FOR GOLD APPRECIATION AS GOLD IS COMMONLY VIEWED AS THE ULTIMATE FORM OF
MONEY
-ANY EMERGING MARKET COUNTRIES hPEGv THEIR LOCAL CURRENCIES TO THE 53$
0EGGING A CURRENCY TO THE 53$ PERTAINS TO THE BASIC IDEA THAT A GOVERNMENT AGREES TO MAINTAINING THE 53$ AS A RESERVE
CURRENCY BY OFFERING TO BUY OR SELL ANY AMOUNT OF DOMESTIC CURRENCY AT THE PEGGED RATE FOR THE RESERVE CURRENCY )N ADDITION THE
GOVERNMENT TYPICALLY MUST ALSO PROMISE TO HOLD RESERVE CURRENCY AT LEAST EQUAL TO THE AMOUNT OF LOCAL CURRENCY IN CIRCULATION
#OUNTRIES WITH CURRENCIES PEGGED TO THE 53$ INCLUDE -EXICO AND #HINA 4HIS IS PARTICULARLY IMPORTANT BECAUSE COUNTRIES SUCH
AS THOSE WILL TAKE AN ACTIVE INTEREST IN MANAGING THEIR FIXED OR FLOATING PEGS !NY FLUCTUATIONS BEYOND THIS BAND WILL BE SUBJECT
TO INTERVENTION BY THE CENTRAL BANK WHICH WILL INCLUDE BUYING OR SELLING 53$
'&4 &OREIGN #URRENCIES 'UIDE 5NITED 3TATES P
&OREIGN #URRENCIES 'UIDE 5NITED 3TATES
)-0/24!.4 #(!2!#4%2)34)#3 /& 4(% 53 $/,,!2 CONTINUED
4HE 4REASURY AND &ED FAVOR A STRONG DOLLAR POLICY
)NTEREST 2ATE $IFFERENTIALS BETWEEN 53 TREASURIES AND FOREIGN BONDS STRONGLY FOLLOWED
4HE INTEREST RATE DIFFERENTIALS BETWEEN 53 TREASURIES AND FOREIGN BONDS ARE IMPORTANT TO FOLLOW DUE TO IT BEING A STRONG INDICATOR
OF POTENTIAL CURRENCY MOVEMENTS AND INVESTORS ARE LOOKING FOR ASSETS WITH THE HIGHEST YIELDS !S YIELDS IN THE 53 DECREASE OR
IF YIELDS ABROAD INCREASE THIS WOULD INDUCE INVESTORS TO SELL THEIR 53 ASSETS AND PURCHASE FOREIGN ASSETS 3ELLING 53 FIXED
INCOME OR EQUITY ASSETS WOULD INFLUENCE THE CURRENCY MARKET BECAUSE THAT WOULD REQUIRE SELLING THE 53$ AND BUYING THE FOREIGN
CURRENCY )F 53 YIELDS INCREASE OR FOREIGN YIELDS DECREASE INVESTORS WOULD BE MORE INCLINED TO PURCHASE 53 ASSETS THEREFORE
BOOSTING THE 53$
53$ )NDEX
-ARKET PARTICIPANTS CLOSELY FOLLOW THE 53 $OLLAR )NDEX AS A GAGE TO OVERALL 53$ STRENGTH OR WEAKNESS
53 CURRENCY TRADING IMPACTED BY STOCK AND BOND MARKETS
4HERE IS A STRONG POSITIVE CORRELATION BETWEEN A COUNTRYS EQUITY AND FIXED INCOME MARKETS AND ITS CURRENCY
)-0/24!.4 %#/./-)# ).$)#!4/23 &/2 4(% 53
!LL OF THE FOLLOWING ECONOMIC INDICATORS ARE IMPORTANT FOR THE 53 (OWEVER SINCE THE 53 IS A SERVICEnORIENTED ECONOMY IT IS
IMPORTANT TO PAY PARTICULAR ATTENTION TO NUMBERS FOR THE SERVICE SECTOR
%MPLOYMENT
#ONSUMER 0RICE )NDEX #0)
0RODUCERS 0RICE )NDEX 00)
'ROSS $OMESTIC 0RODUCT '$0
)NTERNATIONAL 4RADE
%MPLOYMENT #OST )NDEX #0)
)NSTITUTE OF 3UPPLY -ANAGERS &ORMERLY .!0-
)NDUSTRIAL 0RODUCTION
#ONSUMER #ONFIDENCE
2ETAIL 3ALES
'&4 &OREIGN #URRENCIES 'UIDE 5NITED 3TATES P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE #HINA
30/4
#URRENCY #HINESE 9UAN
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ #.9
"EST ,IQUIDITY n '-4
!VERAGE "ID /FFER
PIPS n
PIP #.9
!VERAGE $AILY 4RADING 6OLUME 53 M
3ETTLEMENT 4RANSACTION PLUS ONE DAY 4
4HE YUAN #.9 SPOT &8 MARKET IS LIMITED TO ONSHORE COMPANIES AND FINANCIAL INSTITUTIONS )T IS NOT TRADED OFFSHORE 4HE 53$#.9
RATE IS CLOSELY MANAGED BY THE CENTRAL BANK 0"/# AT AROUND CURRENTLY 4HERE HAVE BEEN CALLS FOR THE #HINESE GOVERN
MENT TO REVALUE ITS CURRENCY BUT THAT HAS MET RESISTANCE !S THE GOVERNMENT CONTINUES TO REFORM ITS ECONOMIC POLICIES AND
STRENGTHEN ITS BANKING SYSTEMS TANGENT TO THE CENTRAL BANK THERE SHOULD BE A REALISTIC CALL FOR OPENING UP SPOT TRADING (OWEVER
THIS WILL TAKE SOME TIME /FFICIALLY THE SYSTEM IS CALLED A MANAGED FLOAT AND NOT A 53$ PEG 4HERE IS NO #.9 FORWARD MARKET
ONLY SPOT &8 4HE NON DELIVERABLE FORWARD MARKET IS NOT TRADED ONSHORE 4HERE IS NO INTERBANK MONEY MARKET BEYOND MONTHS
4HE BOND MARKET IS RESTRICTED TO DESIGNATED ONSHORE FINANCIAL INSTITUTIONS ONLY AND IS NOT LIQUID
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE #HINA P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE #ZECH 2EPUBLIC
30/4
#URRENCY #ZECH +ORUNA
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS %52 #:+
"EST ,IQUIDITY n '-4
!VERAGE "ID /FFER
PIPS n
PIP #:+
!VERAGE $AILY 4RADING 6OLUME %52 nBN
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
4HE #ZECH KORUNA IS A CONVERTIBLE CURRENCY THAT HAS BEEN FREE FLOATING SINCE -AY &OREIGN INVESTORS HAVE UNRESTRICTED
ACCESS TO THE LOCAL MARKETS ,ONDON BANKS ARE VERY ACTIVE IN CURRENCY TRADING WHICH IS ESTIMATED TO ACCOUNT FOR PERCENT OF
DAILY TURNOVER 4HE DEPOSIT MARKET IS ALSO VERY LIQUID AND FOREIGNERS DEAL ACTIVELY )NTEREST RATE SWAPS )23 ARE ALSO AVAILABLE UP
TO YEARS 4HE MARKET IS MOST LIQUID UP TO YEARS 4HE )23 MARKET IS MOSTLY DRIVEN BY OFFSHORE BANKS
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE #ZECH 2EPUBLIC P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE (ONG +ONG
30/4
#URRENCY (ONG +ONG $OLLAR
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ (+$
"EST ,IQUIDITY n '-4
!VERAGE "ID /FFER
PIPS n
PIP (+$
!VERAGE $AILY 4RADING 6OLUME 53 BN
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
53$(+$ IS A MANAGED FLOATING CURRENCY AT A RATE OF AROUND (+$ PER 53$ 4HE NORMAL BAND CONSISTS OF PERCENT FLUCTUA
TION ALLOWANCE 4HERE IS MUCH SPECULATION ABOUT THE POSSIBILITIES OF FREE FLOATING THIS CURRENCY WHICH WILL MOST LIKELY COINCIDE WITH
AND BE LINKED TO THE PROGRESS AND REFORMS OF THE #.9 .O DISTINCTION IS MADE BETWEEN LOCAL AND OFFSHORE TRADING 4HERE IS NO
.$& MARKET &8 OPTIONS ARE AVAILABLE 4HERE ARE NO SPOT OR FORWARD TRADING RESTRICTIONS BUT DOCUMENTATION IS REQUIRED 4HERE IS
A LIQUID GOVERNMENT BOND MARKET %XCHANGE &UND .OTES WITH MATURITIES OF UP TO YEARS )NTEREST RATE SWAPS AND OPTIONS ARE
LIQUID UP TO YEARS
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE (ONG +ONG P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE (UNGARY
30/4
#URRENCY (UNGARIAN &ORINT
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ (5& %52 (5&
"EST ,IQUIDITY n '-4
!VERAGE "ID /FFER
PIPS 53$ (5& n
PIPS %52 (5& n
PIP (5&
!VERAGE $AILY 4RADING 6OLUME %52 nM
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
5NTIL -AY THE FORINT (5& WAS THE MOST RESTRICTED CURRENCY IN THE REGION MANAGED BY A CRAWLING PEG AGAINST THE %52
WITH PERCENT DEVALUATION PER MONTH WITHIN A BAND OF PERCENT FROM THE CENTRAL PARITY )N -AY THIS BAND WAS
WIDENED TO PERCENT AND IN *UNE WAS MADE FULLY CONVERTIBLE FOR CURRENT AND CAPITAL ACCOUNT TRANSACTIONS 4HOUGH THE
WIDER BAND IS STILL IN OPERATION THE (5& IS NOW ESSENTIALLY IN A FREE FLOAT REGIME AROUND A CENTRAL PARITY OF 2ESTRICTIONS ON
FOREIGN HOLDINGS OF MONEY MARKET INSTRUMENTS HAVE ALSO BEEN LIFTED ALLOWING OFFSHORE INVESTORS TO GO SHORT (5&
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE (UNGARY P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE )NDIA
30/4
#URRENCY )NDIAN 2UPEE
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ ).2
"EST ,IQUIDITY n '-4
!VERAGE "ID /FFER
PIPS n
PIP ).2
!VERAGE $AILY 4RADING 6OLUME 53 M
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
4HE EXCHANGE RATE OF THE RUPEE ).2 IS DETERMINED IN THE INTERBANK MARKET 3INCE *ANUARY THIS HAS BEEN MANAGED BY THE
2ESERVE "ANK OF )NDIA AND IS CLASSIFIED AS A MANAGED FLOAT REGIME ,OCAL AND OFFSHORE TRADE IS DIFFERENTIATED IN THAT DOCUMENTA
TION IS REQUIRED FOR BOTH SPOT AND FORWARD FX FOR OFFSHORE TRADING )T IS A WIDELY HELD BELIEF THE ).2 WILL BE AMONG THE FIRST EMERGING
MARKETS TO BECOME SPOT ELIGIBLE WITHOUT RESTRICTIONS OR DOCUMENTATION .$&S ARE AVAILABLE AND &8 OPTIONS HAVE JUST BECOME
AVAILABLE 4HERE ARE SOME TRADING RESTRICTIONS AND DOCUMENTATION IS REQUIRED 3POT FX SETTLEMENT IS 42!.3!#4)/. 0,53 47/
$!93 4 4HERE IS A VERY LIQUID BOND MARKET WITH MATURITIES AVAILABLE OF UP TO YRS GIVEN THE GOVERNMENTgS NEED TO FUND A
PERSISTENT BUDGET DEFICIT )NTEREST 2ATE 3WAPS ARE AVAILABLE ONSHORE AND ARE TRADED UP TO YEARS BUT WITH MIXED LIQUIDITY
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE )NDIA P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE +OREA
30/4
#URRENCY +OREAN 7ON
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ +27
"EST ,IQUIDITY n '-4
!VERAGE "ID /FFER
n
PIP +27
!VERAGE $AILY 4RADING 6OLUME 53 BN
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
4HE WON +27 IS IN A FREE FLOAT REGIME ,OCAL AND OFFSHORE MARKETS ARE TREATED SEPARATELY $OCUMENTATION IS REQUIRED BUT ON FOR
DELIVERY AT MATURITY OFFSHORE AND FOR FORWARD &8 CONTRACTS .$&S ARE TRADED AS ARE &8 OPTIONS 4HERE ARE NO TRADING RESTRICTIONS
)NTEREST 2ATE 3WAPS ARE AVAILABLE AND ARE TRADED UP TO nYEARS WITH INTEREST RATE OPTIONS ALSO AVAILABLE
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE +OREA P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE -EXICO
30/4
#URRENCY -EXICAN 0ESO
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ -8. %52 -8.
"EST ,IQUIDITY n '-4
!VERAGE "ID /FFER
PIPS 53$ -8. n
PIPS %52 -8. n
PIP -8.
!VERAGE $AILY 4RADING 6OLUME 53 BN
3ETTLEMENT #ASH 4OM 3POT
4HE PESO HAS FLOATED SINCE $ECEMBER AFTER THE EXCHANGE RATE BAND REGIME WAS ABANDONED "OTH &8 AND LOCAL DEBT
MARKETS ARE VERY LIQUID 4HE GOVERNMENT ISSUES BILLS WITH TENORS RANGING FROM ONE MONTH UP TO ONE YEAR ON A WEEKLY BASIS
ACCORDING TO A PREnANNOUNCED SCHEDULE 3INCE LAST YEAR THE GOVERNMENT IS ALSO ISSUING LONGERnDATED PESO SECURITIES WITH UP
TO YEAR MATURITY BUT THE SHORT END IS MOST LIQUID 4HE GOVERNMENT HAS ISSUED PESO DENOMINATED SECURITIES ONLY SINCE
AND INFLATION LINKED BONDS SINCE 4HE EXTENSION IN THE YIELD CURVE THAT RESULTED FROM THE CONSOLIDATION OF A MORE STABLE
MACROECONOMIC FRAMEWORK IN RECENT YEARS HAS ALLOWED SEVERAL -EXICAN FIRMS TO ISSUE PESOnDENOMINATED SECURITIES WITH
MEDIUM TERM TENORS IN THE DOMESTIC MARKET )NTEREST RATE SWAPS ARE LIQUID UP TO YEARS AND ARE TRADED UP TO YEARS
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE -EXICO P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE 0OLAND
30/4
#URRENCY 0OLISH :LOTY
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ 0,. %52 0,.
"EST ,IQUIDITY n '-4
!VERAGE "ID /FFER
PIPS 53$ 0,. n
PIPS %52 0,. n
PIP 0,.
!VERAGE $AILY 4RADING 6OLUME 53 BN
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
4HE ZLOTY 0,. HAS BEEN FREE FLOATING SINCE !PRIL )T IS CONVERTIBLE FOR CURRENT ACCOUNT TRANSACTIONS -OST MONEY MARKET
TRANSACTIONS ARE DONE THROUGH FOREX SWAPS FOR OFFSHORE INVESTORS $OMESTIC SECURITY EXPOSURES CAN BE HEDGED IN THE DOMESTIC
FORWARD MARKET BY OFFSHORE INVESTORS !N OFFSHORE INTEREST RATE SWAP MARKET HAS BEEN DEVELOPING FAST WITH UP TO THE YEAR
BEING THE MOST LIQUID PART OF THE )23 CURVE
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE 0OLAND P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE 3INGAPORE
30/4
#URRENCY 3INGAPORE $OLLAR
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ 3'$
"EST ,IQUIDITY n '-4
!VERAGE "ID /FFER
PIPS n
PIP 3'$
!VERAGE $AILY 4RADING 6OLUME 53 BN
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
4HE 3INGAPORE DOLLAR 3'$ IS UNDER A MANAGED FLOAT REGIME GUIDED BY THE CURRENCYgS TRADE WEIGHTED INDEX 4HE -ONETARY
!UTHORITY OF 3INGAPORES LONG TERM POLICY IS TO MANAGE A TRADE WEIGHTED APPRECIATION OF THE CURRENCY TO DAMPEN IMPORTED
INFLATION AND TO BALANCE AGGREGATE DEMAND 4HE LOCAL AND OFFSHORE MARKETS ARE NOT DISTINGUISHED AND THERE ARE NO
LOCALOFFSHORE RESTRICTIONS 4HERE IS A LIQUID SPOT MARKET AND A LIMITED FORWARD &8 MARKET .$&S ARE NOT AVAILABLE BUT &8 OPTIONS
ARE 4HERE ARE NO TRADING RESTRICTIONS DOCUMENTATION IS THEREFORE NOT REQUIRED 7ITH THE PROMOTION OF THE CENTRAL BANK THE
GOVERNMENT AND THE CORPORATE BOND MARKETS HAVE GROWN IN RECENT YEARS )23gS ARE TRADED ON SHORE FROM TO YEARS WITH
LIQUIDITY GOOD UP TO YEARS BUT POOR BEYOND THERE
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE 3INGAPORE P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE 3OUTH !FRICA
30/4
#URRENCY 3OUTH !FRICAN 2AND
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ :!2
"EST ,IQUIDITY n '-4
!VERAGE "ID /FFER
PIPS n
PIP :!2
!VERAGE $AILY 4RADING 6OLUME 53 BN
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
4HE 3OUTH !FRICAN DOMESTIC MARKET IS ONE OF THE MORE SOPHISTICATED IN TERMS OF PRODUCTS AND LIQUIDITY IN COMPARISON TO THE OTHER
MARKETS &OREIGN EXCHANGE AND MONEY MARKETS ARE LIQUID WITH ACTIVE PARTICIPATION BOTH FROM ONSHORE AND OFFSHORE INVESTORS
4HE FIXEDnINCOME MARKET IS ALSO WELL DEVELOPED WITH A TERM STRUCTURE OF UP TO YEARS 4HE )NTEREST RATE SWAP MARKET IS ALSO
DEVELOPING FAST AND BECOMING LIQUID 4HERE ARE RESTRICTIONS FOR OFFSHORE INVESTORS BUT THESE ARE RARELY ENFORCED
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE 3OUTH !FRICA P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE 4HAILAND
30/4
#URRENCY 4HAI "AHT
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ 4("
"EST ,IQUIDITY n '-4
!VERAGE "ID /FFER
PIPS n
PIP 4("
!VERAGE $AILY 4RADING 6OLUME 53 n M
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
&OLLOWING THE !SIAN FINANCIAL CRISIS THE AUTHORITIES INTRODUCED NEW RESTRICTIONS ON 4(" FLOWS 4HESE TIGHTER CONTROLS HAVE
REDUCED 4(" VOLATILITY AND HELPED THE "ANK OF 4HAILAND MAINTAIN INTEREST RATES AT LOWER LEVELS 4(" IS A FREELY FLOATING CURRENCY
WITH SEGREGATED DOMESTIC AND OFFSHORE MARKETS /FFICIAL DOCUMENTATION IS REQUIRED TO TRADE 4(" BOTH IN SPOT AND FORWARD
MARKET .$&S ARE NOT AVAILABLE BUT OPTIONS ARE 4HE "/4 HAS RECENTLY INCREASED THE LEVEL OF DOCUMENTATION REQUIRED BY NON
RESIDENTS 4HE GOVERNMENT BOND MARKET HAS GROWN RAPIDLY SINCE TO HELP SET THE BENCHMARK FOR CORPORATE BOND ISSUANCE
)SSUANCE ROSE SHARPLY AS THE GOVERNMENT RAISED FUNDS TO FINANCE THE FINANCIAL SECTOR BAILnOUT IN 4HE CORPORATE BOND
MARKET HAS ALSO FLOURISHED AS COMPANIES TURN TO THE BOND MARKET FOR FUNDING DUE TO LOW INTEREST RATE AND BANKS RELUCTANCE TO
LEND )23S ARE AVAILABLE OFFnSHORE AND ONnSHORE FROM n YEARS WITH LIQUIDITY POOR BEYOND YEARS
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE 4HAILAND P
'& 4
# /. 4! # 4 (-0#"-'03&953"%*/(
XXXHGUGPSFYDPN
INTERNATIONAL
NORTH AMERICA
FAX
&OREIGN #URRENCIES 'UIDE 4URKEY
30/4
#URRENCY 4URKISH ,IRA
1UOTATION #ONVENTION DECIMAL POINTS
-OST LIQUID CROSS 53$ 42,
"EST ,IQUIDITY n '-4
!VERAGE "ID /FFER
PIPS n
PIP 42,
!VERAGE $AILY 4RADING 6OLUME 53 M
3ETTLEMENT 4RANSACTION PLUS TWO DAYS 4
3INCE &EBRUARY THE 4URKISH ,IRA 42, HAS BEEN A FULLY CONVERTIBLE CURRENCY HAVING BEEN A MANAGED BASKET UP UNTIL THEN
4HERE ARE NO RESTRICTIONS ON OFFSHORE INVESTMENT "OTH FOREX AND FIXEDnINCOME MARKETS ARE LIQUID AND OFFSHORE INVESTORS ARE
FAIRLY ACTIVE IN ALL MARKETS 4HE LONGEST MATURITY IN 42, IS MONTHS 4HE MOST LIQUID PART OF THE CURVE IS UP TO YEAR 4HERE IS A
LIQUID AND ACTIVE REPO MARKET WITH /.nW MATURITIES
4HE h!VERAGE "ID /FFERv LISTINGS ABOVE ARE ILLUSTRATIONS OF HOW THE AVERAGE PRICES OR SPREADS OF A LISTED CURRENCY PAIR MAY APPEAR 4HEY DO NOT HOWEVER
REFLECT THE SPREADS OR BID OFFER PRICES AVAILABLE TO FOREX TRADERS THROUGH 'LOBAL &OREX 4RADING $IVISION OF 'LOBAL &UTURES AND &OREX ,TD
'&4 &OREIGN #URRENCIES 'UIDE 4URKEY P
You might also like
- Boxing Fitness A Guide To Get Fighting FitDocument161 pagesBoxing Fitness A Guide To Get Fighting Fitwilhelmtewari100% (8)
- Geometry Textbook PDFDocument1,129 pagesGeometry Textbook PDFJamie Kim100% (2)
- Complete Flags of The WorldDocument248 pagesComplete Flags of The WorldNicolae MorometeNo ratings yet
- MJ Hudson Fund Guide 1Document55 pagesMJ Hudson Fund Guide 1sukitraderNo ratings yet
- AISC - Design Guide 20 - Steel Plate Shear WallsDocument145 pagesAISC - Design Guide 20 - Steel Plate Shear Wallswilliam robinson100% (3)
- 48001-Chapter 5 PDFDocument8 pages48001-Chapter 5 PDFMarwa HassanNo ratings yet
- GM Foreign Exchange HedgeDocument4 pagesGM Foreign Exchange HedgeRima Chakravarty Sonde100% (1)
- Criminal Procedure Handbook 13th EdDocument664 pagesCriminal Procedure Handbook 13th EdBesnner Sungwa0% (1)
- Retail Layout Management at TescoDocument9 pagesRetail Layout Management at TescoRowanAtkinson88% (8)
- Isaac Spoon - Zoecon Case MKTG5150 Fall 8w2Document9 pagesIsaac Spoon - Zoecon Case MKTG5150 Fall 8w2Isaac SpoonNo ratings yet
- Counterinsurgency Warfare Theory and PracticeDocument130 pagesCounterinsurgency Warfare Theory and PracticeLUZ DE AURORANo ratings yet
- Business Plan: Centro Escolar Las PiñasDocument15 pagesBusiness Plan: Centro Escolar Las PiñasAngelina Abiva78% (9)
- Marketing Strategies Adopted by Danik Jagran and Amar UjalaDocument63 pagesMarketing Strategies Adopted by Danik Jagran and Amar UjalaRavi Kumar100% (1)
- Value Investor Insight - Words of Wisdom PDFDocument43 pagesValue Investor Insight - Words of Wisdom PDFdmoo10No ratings yet
- Criminal-Procedure-13th-Edn-Joubert-Jj BookDocument665 pagesCriminal-Procedure-13th-Edn-Joubert-Jj BookPhatheka MgingqizanaNo ratings yet
- Chapter 3 Feasibility PlanningDocument31 pagesChapter 3 Feasibility Planningrathnakotari63% (8)
- 2019 Agg Power CatalogDocument21 pages2019 Agg Power CatalogElizabeth Myers0% (1)
- Adventist World November 1 2007Document32 pagesAdventist World November 1 2007Ryan O'Neil 船 SeatonNo ratings yet
- Curtis 1348 Manual OverviewDocument66 pagesCurtis 1348 Manual Overviewhomayoun khosravaniNo ratings yet
- Material de Apoyo de OfimáticaDocument542 pagesMaterial de Apoyo de OfimáticaMARIA JOSE LOPEZNo ratings yet
- Biomass Value PropositionDocument10 pagesBiomass Value PropositionInvestInCanadaNo ratings yet
- One Safe Source 2017-2018Document618 pagesOne Safe Source 2017-2018AplesNo ratings yet
- Acca BPP Passcard F1Document209 pagesAcca BPP Passcard F1Tuyết Anh ĐồngNo ratings yet
- Design Standards and References Used On The ExamDocument11 pagesDesign Standards and References Used On The ExamchickenalfredoNo ratings yet
- 3ustainable !) Ntroductory 3ourcebook And) Ssues 4ransport $ivision %nvironment 3ector $eutsche 4echnischeDocument28 pages3ustainable !) Ntroductory 3ourcebook And) Ssues 4ransport $ivision %nvironment 3ector $eutsche 4echnischeDaisyNo ratings yet
- 2005 Naspers ARDocument201 pages2005 Naspers ARbillroberts981No ratings yet
- ($! 8 Channel: Users ManualDocument80 pages($! 8 Channel: Users ManualjohnqevilNo ratings yet
- 1 - 6A Number Patterns and Fraction MathDocument60 pages1 - 6A Number Patterns and Fraction MathVõ Quốc VươngNo ratings yet
- Photonics Value PropositionDocument10 pagesPhotonics Value PropositionInvestInCanadaNo ratings yet
- Medical Devices Value PropositionDocument10 pagesMedical Devices Value PropositionInvestInCanada0% (1)
- IntITC 3001Document2 pagesIntITC 3001Payphone.comNo ratings yet
- Labour LawDocument115 pagesLabour LawMochaka100% (1)
- Criminal Procedure Handbook Thirteen EditionDocument665 pagesCriminal Procedure Handbook Thirteen EditionKehumileNo ratings yet
- MO112F20Document201 pagesMO112F20polerNo ratings yet
- Upg Ut5l-Bs SpecsDocument1 pageUpg Ut5l-Bs SpecsarifmjNo ratings yet
- TP 119 2 A1 - HIRMplusreqs - V2signedDocument40 pagesTP 119 2 A1 - HIRMplusreqs - V2signedcmpmarinhoNo ratings yet
- Ub12500 PDFDocument2 pagesUb12500 PDFAbi Yusuf AuliaNo ratings yet
- Embedded Systems Design using the Rabbit 3000 Microprocessor: Interfacing, Networking, and Application DevelopmentFrom EverandEmbedded Systems Design using the Rabbit 3000 Microprocessor: Interfacing, Networking, and Application DevelopmentNo ratings yet
- Loadmasterx5 LeafletDocument4 pagesLoadmasterx5 LeafletBurakNo ratings yet
- Program - MMTC BBSJ 2011Document29 pagesProgram - MMTC BBSJ 2011Lindsey C. HolmesNo ratings yet
- %pdvnfoubdjpofttpcsf Qsèdujdbqspgftjpobm: 'Uóa GrélcoDocument113 pages%pdvnfoubdjpofttpcsf Qsèdujdbqspgftjpobm: 'Uóa GrélcoOscar David GutierrezNo ratings yet
- Noshbox MenuDocument2 pagesNoshbox MenueatlocalmenusNo ratings yet
- Hang Out SB 5Document8 pagesHang Out SB 5hassan12201No ratings yet
- BD BIOSCIENCES - Discovery Labwere - 2006 - FEMGDocument271 pagesBD BIOSCIENCES - Discovery Labwere - 2006 - FEMGFELIPE EDMUNDO MARTINEZ GONZALEZNo ratings yet
- Cherry Rivetless Nut Plate - PDF 1Document4 pagesCherry Rivetless Nut Plate - PDF 1Juan Fernando Quintero BalcazarNo ratings yet
- TS6 EngDocument2 pagesTS6 EngCelio CostaNo ratings yet
- Nasdaq WDFC 2010Document136 pagesNasdaq WDFC 2010Chin HuanNo ratings yet
- (Ome4Heater!Udio3Ystem 3# (4 3# (4: 4ableofcontentsDocument28 pages(Ome4Heater!Udio3Ystem 3# (4 3# (4: 4ableofcontentsnervagusNo ratings yet
- DCU Business School Postgraduate Brochure 2010Document48 pagesDCU Business School Postgraduate Brochure 2010Dublin City University, InternationalNo ratings yet
- Poliakoff Sales SheetDocument1 pagePoliakoff Sales SheetGreenleaf Book GroupNo ratings yet
- CV-series Programmable Controllers ManualDocument146 pagesCV-series Programmable Controllers ManualRafael Pereira da SilvaNo ratings yet
- FIFA The 11 The Prevention ProgrammeDocument28 pagesFIFA The 11 The Prevention ProgrammeDirk DNo ratings yet
- Cash Accounting and Cash Flow Planning With SAP Liquidity PlannerDocument17 pagesCash Accounting and Cash Flow Planning With SAP Liquidity PlannerLTSSILVANo ratings yet
- Industrial Chemicals Value PropositionDocument10 pagesIndustrial Chemicals Value PropositionInvestInCanadaNo ratings yet
- GBW15-22-30-45P SoundproofDocument2 pagesGBW15-22-30-45P SoundproofRAFAEL RIBEIRONo ratings yet
- Surviving Sepsis GuidelinesDocument58 pagesSurviving Sepsis GuidelinesMagic_OverNo ratings yet
- DCU Executive MBADocument6 pagesDCU Executive MBADublin City University, InternationalNo ratings yet
- Segmentation, TargetingDocument27 pagesSegmentation, TargetingRajesh ShresthaNo ratings yet
- Prakash Kumar 10927921 Saurabh Surana 10927865 Rohit Nerurkar 10927806 Sachin Singh 10927862 Abhishek Moharana 10927912 Sushant Omer 10927871Document28 pagesPrakash Kumar 10927921 Saurabh Surana 10927865 Rohit Nerurkar 10927806 Sachin Singh 10927862 Abhishek Moharana 10927912 Sushant Omer 10927871Abhishek MoharanaNo ratings yet
- SLM-19667-BBA - Fiancial Markets and InstitutionsDocument155 pagesSLM-19667-BBA - Fiancial Markets and InstitutionsMadhusudanNo ratings yet
- Audit of InvestmentDocument5 pagesAudit of InvestmentRodwin DeunaNo ratings yet
- Strategy Index 10 UpdateDocument1 pageStrategy Index 10 UpdateChanuka PrabhashNo ratings yet
- AFAR Installment Sales PDFDocument9 pagesAFAR Installment Sales PDFArah OpalecNo ratings yet
- Emerging Issues in International Marketing-17.02Document61 pagesEmerging Issues in International Marketing-17.02anmolNo ratings yet
- Marketing of Financial ServicesDocument88 pagesMarketing of Financial Servicesshreyans100% (1)
- FullStmt 1673361432885 4230166313357 MUHAMMADRAHIL786Document5 pagesFullStmt 1673361432885 4230166313357 MUHAMMADRAHIL786Nasir AhmedNo ratings yet
- FAQs Sovereign Gold Bond Scheme Tranche IVDocument5 pagesFAQs Sovereign Gold Bond Scheme Tranche IVSaiNo ratings yet
- Acme Co.: Key Partners Key Activities Value Proposition Customer Relationship Customer SegmentsDocument5 pagesAcme Co.: Key Partners Key Activities Value Proposition Customer Relationship Customer SegmentsGladys NolascoNo ratings yet
- Managment ProjectDocument18 pagesManagment ProjectAhmed TalaatNo ratings yet
- Ib SMB202 4Document108 pagesIb SMB202 4RanjitNo ratings yet
- Strategic Analysis of Power Washing Powder (PVT) LtdDocument9 pagesStrategic Analysis of Power Washing Powder (PVT) LtdShahrukh Ghulam NabiNo ratings yet
- Some New Evidence On Why Companies Use Convertible BondsDocument12 pagesSome New Evidence On Why Companies Use Convertible BondsferinadNo ratings yet
- Analysis On Virgin Australia Internal Environments PDFDocument8 pagesAnalysis On Virgin Australia Internal Environments PDFdefa reyNo ratings yet
- Product MarketingDocument4 pagesProduct MarketingJolina AnitNo ratings yet
- The Moral Economy of The PeasantDocument15 pagesThe Moral Economy of The PeasantFitrisia RahmaNo ratings yet
- ScriptDocument2 pagesScriptJOANNE MICHELLE CASTIBLANCO FERNANDEZNo ratings yet
- Calculate Cost of Capital and WACCDocument4 pagesCalculate Cost of Capital and WACCshazlina_liNo ratings yet
- ML Language ModellingDocument29 pagesML Language ModellingG NNo ratings yet
