Posted: January 20th, 2016

As a financial analyst, you are asked to advise a MNC about its one-year investment plan next year in Germany.

As a financial analyst, you are asked to advise a MNC about its one-year investment plan next year in Germany. Because the investment is denominated in euros, you are asked to forecast how the euro’s value may change against the U.S. dollar over the 1-year period. For your assessment, use all of the three major forecasting techniques.

• Fundamental forecasting
• Technical forecasting
• Market-based forecasting

Note: Students should form different teams. Each team should be responsible to assess the next year move of a major currency against the U.S. dollars as noted below, applying the scenario you just read.

• Euro against U.S. dollar: Team A
• British pound against U.S. dollar: Team B
• Japanese yen against U.S. dollar: Team C
• Canadian dollar against U.S. dollar: Team D
• Australian dollar against U.S. dollar: Team E