Foreign Exchange Markets Geographic Extent of the

Foreign Exchange Markets

Geographic Extent of the Market

Geographic Extent of the Market

Functions of the FOREX Market

Market Participants

Bank and Non-bank Dealers

Individuals and Firms

Speculators and Arbitrageurs

Central Banks and Treasuries

Continuous Linked Settlement

Foreign Exchange Settlement in Europe

Transactions in the Interbank Market

Spot Transactions

Outright Forward Transactions

Swap Transactions

Swap Transactions

Swap Transactions

Size of the FOREX Market

Size of the FOREX Market

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Bid, Ask, and Mid-Point Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Exchange Rates: New York Closing Snapshot

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rates & Quotations

Foreign Exchange Rate Determining/Forecasting

Foreign Exchange Rate Determining/Forecasting

Purchasing Power Parity Approach

Balance of Payments (Flows) Approach

Monetary Approaches

Asset Market Approach (Relative Prices of Bonds)

Asset Market Approach (Relative Prices of Bonds)

Asset Market Approach (Relative Prices of Bonds)

Asset Market Approach (Relative Prices of Bonds)

Currency Market Intervention

Currency Market Intervention

Forecasting in Practice

Exchange Rate Forecasting Methods

Forecasting in Practice

Forecasting in Practice