Curreny Forecast Essay

1244 Words Sep 14th, 2014 5 Pages
EFB312 – International Finance
Currency Forecasting Project
Dora Chou n9248871
Queensland University of Technology
In the ever-changing financial markets, people should diversify their investments to earn the maximum profit. Distributing different portion of money into selected currencies is one of the approaches to make money. For the past many years, scholars have developed a number of methods to predict exchange rates. As a speculator, I am going to use three measures including Asset Market Approach,
Relative PPP, and International Fisher Effect for currency forecasting. From the fundamental perspective, Asset Market Approach considers economic growth, unemployment rate, political risk, etc. I would like to use Relative PPP
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Moreover, dwelling investment is
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expected to increase noticeably as a share of GDP. The conditions for labour market remain subdued, and the unemployment rate is probably to rise to a higher level in a sustained way until 2016. (RBA Statement on Monetary Policy, 2014 August) In conclusion, USD is likely to be the best target currency to invest with stable Real
GDP growth and downward trend in unemployment rate.
Relative

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