Global Financial and Capital Markets
Description
This module provides an overview of the financial and capital markets at an international level. It links the theory and practice of foreign exchange markets and enables students to forecast forex rates using fundamental and technical analysis. It considers both money and bond markets and explains how global macroeconomic variables and monetary and fiscal policy affect the price of assets. It also develops an understanding of the related fx basic derivative-related financial instruments such as forwards, futures, options and swaps.
Learning Outcomes
Investigate the foreign exchange market, including covered and uncovered interest parity and purchasing power parity.
Discuss fixed income markets including money and bond markets and the term structure of interest rates.
Distinguish between different type of derivatives and how they might be used to hedge risk.
Predict short term movement of exchanges rates based on fundamental and technical analysis