Week 7 Discussion 1 Investment

Week 7 Discussion 1 Investment "Foreign Exchange Derivative Markets" Please respond to the following two part discussion: (Part 1) From the first e-Activity, speculate one specific area in which the next Triennial report may show a significant change. Explain how you arrived at your conclusion. (e-Activity for Part I: Go to the Bank for International Settlements Website to read the results summarized in the article titled “Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity in April 2010 – Preliminary Global Results – Turnover”, dated September 2010, located at http://www.bis.org/publ/rpfx10.htm. (Part II) Considering the U.S. Federal Reserve Board announced that U.S. interest rates will stay low through mid-2014, analyze how this will affect the foreign exchange derivatives market. Suggest whether or not you agree with this strategy. Provide support for your rationale.