Euro / Singapore Dollar FX Cross Rate

Graph 1

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Graph 3 Summary for group presentation Forex transactions have been made based on the currencies pair euro/sgd (singapore dollar). Investment choice was based on the data of currencies movement and the objective considerations related to the economic strength of the countries: The first chart showed us that the currencies fluctuate very often from the months of January to November 2011. The second and the third charts showed us the continued high-low fluctuations in the transaction period. Thus, I considered that there were abundant of window opportunities to make profit through trading the currencies, whether at a long or short position.

Investors confidence is higher , especially in the singapore dollar due to the following factors despite the eurozone financial crisis. i) Political stability

ii) Europe and Singapore very closedly linked international tradings mean continued high demand as well as exchange for the two currencies. iii) Singapore is one of the world's most prosperous countries with strong international trading links (its sea port is one of the world's busiest in terms of tonnage handled). iv) It is a well-established international business hub for different industries such as the electronic manufacturing, bio-technology, financial services, retail, tourism, telecommunication, information technology, education and air as well maritime transportation businesses. This leads to a very sustainable economy in my opinion. v) Strong economic fundamentals- its current account and budget surpluses, per capita GDP which is equal to that of the leading nations of Western Europe , high employmeny rate, continued growth in the year 2012 is also statistically forecasted.

vi) National demand- an affluent society, higher demand for quality goods and services i.e.oversea education ,international travels and leisure activities and preference and demand of european products, this means expected continued demeand and exchange for the currencies. vii) Singapore is relatively safe from the natural disasters i.e. earthquake which will potentially cripple the economic well beings. However, a few flood incidents were reported but they are not serious. viii) War event is highly unlikely in the South East Asia region.

In conclusion, I will maintain mostly short positions in trading the euro against the singapore dollar in order to gain from the FOREX market because the euro value has been depreciating against the dollar for the past one year and it is observed that the trend is likely to continue in future unless the economic outlook in eurozone would be greatly improved. At the same time, as the impact of the eurozone crisis is increasingly felt by its Asian business counterparts, it can also be predicted that the currencies movement will be more volatile as more investment capitals are withdrawn and slowing of exports from Singapore to the West, or due to unforseenable uncertainty to predict future forecast of economic outputs.