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You are encouraged to read the following information regarding AI before

carry out the duty in this assignment
Generative AI tools are restricted for certain functions in this assessment task
In this assessment, you can use generative artificial intelligence (AI) in order to
define the terms only, any use of generative AI must be appropriately
acknowledged (see Learn HQ).
Assignment Sheet
Unit Name International Financial Management

Unit Code BFW2341

Unit Facilitator Name Ms Darniya Prabu

Assignment Name Forex Simulation Trading

Assignment Number/Reference Assessment 1

Weightage 30%

Learning Outcomes
This assignment assesses the following learning outcomes:

Learning Learning Outcome Description

Outcome
Number

LO1 Explore the international financial environment and the importance of

foreign exchange risk management.

LO3 Demonstrate how foreign exchange market mechanisms can be used to

hedge foreign currency transaction exposure.

Weighting
This assignment is worth 30% of your overall grade for this unit.

Requirements
This assignment has the following requirements:

Assignment Type Individual

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Response Format Written copy

Response Specifications N/A

Due Date 4.30 pm (Malaysian Time), 28 March 2024

Submission Process Submit with Moodle

Notes: N/A

Assignment Instructions
There are three parts, in part 1 you are required to demonstrate currency trading using the
platform MetaTrader 5 demo account. Complete both the table of historical price of the
currency pair and the transactions records and describe the transactions and comment the
trading performed during the last three weeks. Students may use Instant Execution and
Pending Order (Buy Limit and Sell Limit) for the trading.

Part 2 Conduct a regression analysis to estimate the relationship between the exchange rate
for the period from 2014 – 2023 (use annual data) based on the given variables.
Part 3 is a short essay question that required you to describe the factors that drives the
movement of your choice pair of currency in part 1 above?

BFW2341 S1 2023 Forex Trading Simulation

Student name:
Student ID:

MetaTrader 5 demo account information

User ID (digit): XXXXXXXXXX
Password: XXXXXXXX

Part 1: Trading currencies

Fill in the historical price of the currency pair used to trade

Date Currency pair Weekly High Weekly Low
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Fill in your transaction records (entry prices), increase rows if necessary.

Order type
Date Currency pair Volume (lot) Executed price
(market/limit)

Fill in your transaction records (entry prices), increase rows if necessary.

Describe your transactions and comment on your trading perform? (word limit 500)

In part 2
Conduct a regression analysis to estimate the relationship between the exchange rate for
the period from 2014 – 2023 (use annual data) based on the following variables.
i) Canada (CAD/USD)
or
ii) Japan (JPY/USD)
or
iii) Malaysia (MYR/USD)
The independent variables to be analysed are as follows;
 Constant Gross Domestic Product per capita
 Inflation Rate using CPI
 Central Government Debt
The above database can be found at https://fred.stlouisfed.org/.
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Explain in a short paragraph the results you have obtained from the regression analysis
(word limit 500)
In part 3
Is a short essay question, you are required to describe the factors that drives the movement
of your choice pair of currency in Part 1 above?
Note: Your discussion must include scenarios or actual events that have taken place to
cause the currency movement in that particular country. (500 words)