Question

A person that have $1,000,000 who want to buy/sell currency between 23/10 to 25/10.

You have an option to use any one of the following currency pairs:

GBP/USD

EUR/USD

SDG/USD

AUD/USD

Question required a critical analysis on which one of the above currency pairs you will use to trade.

Please help us to answer this question, and give it detail for us to undertand, thank you

(25marks)

GBPUSD GBPUSD Adj. Close Close EURUSD EURUSD Adj. Close Close SGDUSD SGDUSD Adj. Close Close AUDUSD AUDUSD Adj. Close Close 0.682 0.682 Date FRI 10/25/2019 THU 0/24/2019 /2019 1.2821 1.2851 1.2914 1.2821 1.2851 1.2914 1.1078 1.1104 1.1131 1.1078 1.1104 1.1131 0.7335 0.7332 0.7342 0.7335 0.7332 0.7342 WED 0.6818 0.6854 0.6818 0.685

Start from USD, trade 1 times which means trade from 23 then close at 25, according to first figure result, ovjective is determine which currency pair will you use to trade.

Answer 1

Available USD	1000000
Option A	GBP/USD
On 23/10	Sell 1000000 USD and purchase GBP
	USD	Conversion Rate( 1/ convert rate)	GBP
	1000000.0000	0.7744	774353.4149
On 25/10	Sell 774353.4 GBP and purchase USD
	GBP Conversion Rate		USD
	774353.4149	1.2821	992798.5132
Option B	EUR/USD
On 23/10	Sell 1000000 USD and purchase EUR
	USD	Conversion Rate( 1/ convert rate)	GBP
	1000000.0000	0.8984	898391.8785
On 25/10	Sell 774353.4 EUR and purchase USD
	GBP	Conversion Rate	USD
	898391.8785	1.1078	995238.5230
Option C	SGD/USD
On 23/10	Sell 1000000 USD and purchase SGD
	USD	Conversion Rate( 1/ convert rate)	SGD
	1000000.0000	1.3620	1362026.6957
On 25/10	Sell 774353.4 SGD and purchase USD
	SGD	Conversion Rate	USD
	1362026.6957	0.7335	999046.5813
Option D	AUD/USD
On 23/10	Sell 1000000 USD and purchase AUD
	USD	Conversion Rate( 1/ convert rate)	AUD
	1000000.0000	1.4590	1459002.0426
On 25/10	Sell 774353.4 AUD and purchase USD
	AUD	Conversion Rate	USD
	1459002.0426	0.6820	995039.3931

This better to Choose Option C - SGD/USD