Foreign Exchange Market Information

Because foreign exchange prices move very quickly it is important for all market participants to have access to up-to-date prices, preferably 'real-time' prices and feeds. These can be provided by the various commercial operators, such as Moneyline Telerate, Reuters and Bloomberg. Publications such

Tip as the Financial Times also carry a very good market page within the Companies and Markets section, covering FX and money rates. But, remember, this information is historical as it is a day old before it appears in print. A selection of various data forms is shown in Figures 7.1 and 7.2.

When dealing on the telephone with banks, it is vital that the client does not put the bank's dealer on 'hold'. If the bank is placed on hold while a second call is made or received (usually because the client is seeking a competitive quote), and the dealer shouts 'change', no one will hear the new rate. This can lead to confusion.

UK pound spot and forward

Figure 7.1

1

1 POUND SPOT FORWARD AGAINST THE POUND 1

Nov 18

Closing

Change

Bid/offer

Day's

Mid

One month

Three months

One year

Bank of

mid-point

on day

spread

high

low

Rate

%PA

Rate

%PA

Rate

%PA

Eng. Index

Europe

Czech Rep.

(Koruna)

47.8514

-0.1431

325

702

48.0040

47.7710

47.8061

1.1

47.7069

1.2

47.2167

1.3

Denmark

(DKr)

11.6435

-0.0063

404

466

11.6586

11.6095

11.6384

0.5

11.6228

0.7

11.5448

0.8

103.3

Hungary

(Forint)

370.629

-1.2650

317

941

371.870

370.317

372.338

-5.5

375.736

-5.5

390.266

-5.3

Norway

(NKr)

11.4604

-0.0037

566

642

11.4793

11.4321

11.4901

-3.1

11.5499

-3.1

11.7506

-2.5

106.6

Poland

(Zloty)

6.1642

-0.0378

590

693

6.2209

6.1541

6.1791

-2.9

6.2054

-2.7

6.2693

-1.7

Romania

(Leu)

52967.9

-35.80

307

052

53115.0

52855.0

Russia

(Rouble)

50.3407

+0.0748

328

486

50.3805

50.2531

Slovakia

(Koruna)

65.1970

-0.1529

506

433

65.9180

64.9450

65.3288

-2.4

65.4108

-1.3

65.7686

-0.9

Slovenia

(Tolar)

359.766

-1.1550

533

999

361.505

358.877

Sweden

(SKr)

14.2108

-0.0460

056

160

14.2381

14.1705

14.2132

-0.2

14.2156

-0.1

14.2062

0.0

78.5

Switzerland

(SFr)

2.3010

+0.0015

998

021

2.3036

2.2933

2.2949

3.2

2.2822

3.3

2.2282

3.2

114.7

Turkey

(Lira)

2493948

-34661

018

877

2527572

2488018

UK

(£)

105.9

Euro

(i)

1.5677

-0.0010

673

680

1.5699

1.5631

1.5669

0.7

1.5644

0.9

1.5511

1.1

82.81

SDR

1.183900

Americas

Argentina

(Peso)

5.6214

-0.0232

133

294

5.6294

5.5588

Brazil

(R$)

5.6435

-0.1827

386

484

5.8243

5.5927

Canada

(C$)

2.5095

+0.0140

092

097

2.5163

2.4945

2.5072

1.1

2.5027

1.1

2.484

1.0

74.7

Mexico (

^New Peso)

16.0861

-0.0850

840

881

16.1910

16.0545

16.1443

-4.3

16.2725

-4.6

16.9938

-5.6

Peru

(New Sol)

5.6815

-0.0050

805

824

5.6824

5.6758

USA

($)

1.5813

+0.0024

812

813

1.5827

1.5777

1.578

2.5

1.5713

2.5

1.5441

2.4

113.0

Pacific/Middle East/Africa

Australia

(A$)

2.8079

-0.0011

075

082

2.8123

2.7996

2.8099

-0.9

2.8139

-0.9

2.8286

-0.7

74.5

Hong Kong

(HK$)

12.3331

+0.0185

323

338

12.3441

12.3061

12.3097

2.3

12.2633

2.3

12.0946

1.9

India

(Rs)

76.1847

+0.1133

032

661

76.2661

76.0610

76.2565

-1.1

76.4173

-1.2

77.2181

-1.4

Indonesia

(Rupiah)

14223.3

-29.40

150

317

14279.1

14203.8

14193.53

2.5

14133.17

2.5

13888.69

2.4

Iran

(Rial)

12626.3

+18.8000

267

259

Israel

(Shk)

7.3924

+0.0290

842

005

7.4005

7.3718

Japan

(Y)

191.513

+1.2790

452

575

191.680

190.230

190.888

3.9

189.598

4.0

184.048

3.9

132.2

Kuwait

(Kuwaiti D)

0.4761

+0.0005

758

764

0.4764

0.4749

0.4753

2.0

0.4737

2.1

0.4674

1.8

Malaysia

(M$)

6.0088

+0.0090

086

089

6.0135

5.9960

New Zealand

(NZ$)

3.1771

+0.0161

757

785

3.1805

3.1650

3.1822

-1.9

3.1923

-1.9

3.2319

-1.7

90.0

Philippines

(Peso)

84.4467

+0.1729

203

730

84.4730

84.3579

84.5445

-1.4

84.8999

-2.1

86.9417

-3.0

Saudi Arabia

(SR)

5.9302

+0.0086

297

307

5.9351

5.9178

5.9208

1.9

5.9036

1.8

5.8544

1.3

Singapore

(S$)

2.7897

+0.0053

891

902

2.7906

2.7834

2.7822

3.2

2.7677

3.2

2.7057

3.0

South Africa

(R)

15.1227

-0.0900

163

291

15.2085

15.0675

15.2414

-9.4

15.483

-9.5

16.4886

-9.0

South Korea

(Won)

1912.36

+4.2600

215

258

1918.23

1900.99

1913.33

-0.6

1915.4

-0.6

1920.87

-0.4

Taiwan

(T$)

54.9564

+0.1606

467

660

54.9777

54.8314

54.8493

2.3

54.6003

2.6

53.5361

2.6

Thailand

(Bt)

68.6025

-0.1034

766

284

68.7990

68.4120

68.5141

1.5

68.3328

1.6

67.6526

1.4

U A E

(Dirham)

5.8080

+0.0087

062

097

5.8125

5.7957

5.796

2.5

5.772

2.5

5.6761

2.3

Bid/offer spreads in the Pound Spot table show only the last three decimal places. Sterling index calculated by the Bank of England. Base average 1990 = 100. Index rebased 1/2/95. The

| exchange rates printed in this table are also available on the internet at http://www.FT.com

Source: Extract from the Financial Times, 19 November 2002

Source: Extract from the Financial Times, 19 November 2002

US dollar spot and forward

Figure 7.2

DOLLAR SPOT FORWARD AGAINST THE DOLLAR

Nov 18

Closing

Change

Bid/offer

Day's

Mid

One month

Three months

One year

J.P. Morga

mid-point

on day

spread

high

low

Rate

%PA

Rate

%PA

Rate

%PA

Index

Europe

Czech Rep.

(Koruna)

30.2618

-0.1357

508

- 727

30.3930

30.2350

30.2966

-1.4

30.3628

-1.3

30.5798

-1.1

Denmark

(DKr)

7.3635

-0.0150

618

- 652

7.3817

7.3406

7.3757

-2.0

7.3973

-1.8

7.477

-1.5

102.4

Hungary

(Forint)

234.390

-1.1500

200

- 580

235.470

234.200

235.965

-8.1

239.135

-8.1

252.755

-7.8

Norway

(NKr)

7.2477

-0.0131

455

- 499

7.2695

7.2285

7.2817

-5.6

7.3509

-5.7

7.6102

-5.0

105.5

Poland

(Zloty)

3.8983

-0.0298

951

014

3.9405

3.8935

3.916

-5.4

3.9494

-5.2

4.0603

-4.2

Romania

(Leu)

33497.5

-72.50

750

- 200

33555.0

33425.0

Russia

(Rouble)

31.8360

320

- 400

31.8475

31.8320

Slovakia

(Koruna)

41.2313

-0.1582

033

- 593

41.7150

41.0850

41.4013

-4.9

41.6303

-3.9

42.5948

-3.3

Slovenia

(Tolar)

227.520

-1.0700

380

- 660

228.720

227.060

Sweden

(SKr)

8.9871

-0.0425

840

- 901

9.0147

8.9600

9.0075

-2.7

9.0474

-2.7

9.2006

-2.4

78.0

Switzerland

(SFr)

1.4552

-0.0012

545

- 558

1.4587

1.4488

1.4544

0.7

1.4526

0.7

1.4431

0.8

114.6

Turkey

(Lira)

1577200

-24300

500

- 900

1599000

1573500

UK (0.6324)*

(£)

1.5813

+0.0024

812

813

1.5827

1.5777

1.578

2.5

1.5713

2.5

1.5441

2.4

105.2

Euro (0.9914)

* (i)

1.0087

+0.0022

085

- 089

1.0120

1.0058

1.0071

1.9

1.0044

1.7

0.9955

1.3

SDR

0.74870

Americas

Argentina:):

(Peso)

3.5550

-0.0200

500

- 600

3.5600

3.5100

Brazil

(R$)

3.5690

-0.1210

660

- 720

3.6660

3.5350

Canada

(C$)

1.5870

+0.0065

869

- 871

1.5917

1.5796

1.5889

-1.4

1.5927

-1.4

1.6087

-1.4

75.0

Mexico (New Peso)

10.1730

-0.0690

720

- 740

10.1800

10.1720

10.2312

-6.9

10.3565

-7.2

11.006

-8.2

Peru

(New Sol)

3.5930

-0.0085

925

- 935

3.5975

3.5885

USA

($)

114.1

Pacific/Middle East/Africa

Australia

(A$)

1.7757

-0.0033

756

- 759

1.7803

1.7699

74.2

Hong Kong

(HK$)

7.7996

+0.0001

993

- 998

7.7998

7.7993

7.8011

-0.2

7.8049

-0.3

7.8331

-0.4

India

(Rs)

48.1800

300

- 300

48.2300

48.1300

48.3265

-3.7

48.6353

-3.8

50.01

-3.8

Indonesia

(Rupiah)

8995.00

-32.00

000

- 000

9018.00

8990.00

Iran

(Rial)

7985.00

500

- 500

Israel

(Shk)

4.6750

+0.0114

700

- 800

4.6800

4.6660

Japan

(Y)

121.115

+0.6300

080

150

121.300

120.310

120.975

1.4

120.67

1.5

119.2

1.6

135.1

Kuwait (Kuwaiti D)

0.3011

-0.0001

009

013

0.3013

0.3006

0.3012

-0.6

0.3014

-0.5

0.3027

-0.5

Malaysiaf

(M$)

3.8000

000

- 000

3.8000

3.8000

New Zealand

(NZ$)

2.0092

+0.0072

084

101

2.0125

2.0048

Philippines

(Peso)

53.4050

+0.0300

900

- 200

53.4500

53.3000

53.579

-3.9

54.034

-4.7

56.3075

-5.4

Saudi Arabia

(SR)

3.7503

-0.0002

501

- 505

3.7505

3.7501

3.7523

-0.6

3.7574

-0.8

3.7915

-1.1

Singapore

(S$)

1.7642

+0.0007

639

- 645

1.7653

1.7625

1.7631

0.7

1.7614

0.6

1.7523

0.7

South Africa

(R)

9.5638

-0.0712

600

- 675

9.6287

9.5400

9.6591

-12.0

9.8541

-12.1

10.6788

-11.7

South Korea

(Won)

1209.40

+0.9000

930

- 950

1210.00

1204.10

1212.55

-3.1

1219.05

-3.2

1244.05

-2.9

Taiwan

(T$)

34.7550

+0.0500

500

- 600

34.7600

34.7100

34.76

-0.2

34.75

0.1

34.6725

0.2

Thailand

(Bt)

43.3850

-0.1300

700

- 000

43.5500

43.3300

43.42

-1.0

43.49

-1.0

43.815

-1.0

U A E

(Dirham)

3.6730

720

- 740

3.6766

3.6720

3.6731

0.0

3.6735

-0.1

3.6761

-0.1

*The closing mid-point rates for the Euro and £ are shown In brackets. The other figures in both rows are in the reciprocal form In line with market convention. tFloating rate now shown for Argentina. J Official rate set by Malaysian government. The WM/Reuters rate for the valuation of capital assets is 3.80 MYR/USD. Bid/offer spreads in the Dollar Spot table show only the last three decimal places. J.P. Morgan nominal indices Nov 8: Base average 1990 = 100. Bid, offer, mid spot rates and forward rates in both this and the pound table are derived from the WM/REUTERS 4pm (London time) CLOSING SPOT and FORWARD RATE services. Some values are rounded by the F.T. The exchange rates printed in this table are also available on the internet at http://www.FT.com

*The closing mid-point rates for the Euro and £ are shown In brackets. The other figures in both rows are in the reciprocal form In line with market convention. tFloating rate now shown for Argentina. J Official rate set by Malaysian government. The WM/Reuters rate for the valuation of capital assets is 3.80 MYR/USD. Bid/offer spreads in the Dollar Spot table show only the last three decimal places. J.P. Morgan nominal indices Nov 8: Base average 1990 = 100. Bid, offer, mid spot rates and forward rates in both this and the pound table are derived from the WM/REUTERS 4pm (London time) CLOSING SPOT and FORWARD RATE services. Some values are rounded by the F.T. The exchange rates printed in this table are also available on the internet at http://www.FT.com

Source: Extract from the Financial Times, 19 November 2002

If you are ever unsure how many figures are required after the decimal point check how many appear in the standard spot quotation.

The reason information is so very important relates back to one of the favourite sayings in the market: 'every single piece of known information is already discounted in the price'.

So why do markets and prices move?

It all comes down to what we don't know. Therefore the bank with access

Tip to faster market information will have the opportunity to change its prices ahead of other market players, assimilating the new information, and will have a competitive advantage, assuming, of course, that it has moved its price the right way!

Forex Trading Manual

Forex Trading Manual

In  any  business  or  moneymaking  venture,  preparation  and foreknowledge are the keys to success.   Without this sort of insight,  the  attempt  to  make  a  profitable  financial  decision can only end in disaster and failure, regardless of your level of motivation  and  determination  or  the  amount  of  money you plan to invest.

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