FXCM Research Team

In the months since the novel coronavirus (COVID-19) gained global visibility, governments around the world responded by taking drastic action. At the time of this writing (27th March 2020), health care professionals had confirmed more than 375,000 cases and more than 15,000 people had died, according to the World Health Organization (WHO). The global outbreak, which the WHO labeled a pandemic on 11th March 2020, has had a significant impact…

The Toronto Stock Exchange (TSX) is Canada's largest and oldest equities trading and capital raising market. The TSX is part of TMX Group, which is a publicly traded company that operates several Canadian markets and clearinghouses for equities, cash, derivatives, fixed income and energy. The TSX dates back to 1852, when it was an association of 12 Canadian businessmen. The exchange was formally founded on 25 October 1861, when 18…

What Is The Dotcom Bubble Of 2000? The "dotcom" bubble refers to the rapid rise and subsequent freefall in the price of internet stocks and the broader NASDAQ market that took place in the late 1990s. The collapse in 2000 prefigured the overall sharp drop in stock prices and the recession that followed, exacerbated by the terrorist attacks on 11th September 2001. NASDAQ, which to this day is heavily weighted…

During times of extreme pricing volatility or market panic, the term "circuit breaker" is frequently used by traders, brokers and the financial media. Amid extraordinary events such as viral outbreaks or terrorist attacks, these devices are designed to prevent full-blown market crashes. Circuit Breaker Defined In the physical world, a circuit breaker is a safety mechanism used to cut the flow of electricity through a closed path. When engaged, electrical…

Despite having the second-largest economy in Africa and a wealth of natural resources, South Africa's currency, the rand (ZAR), has been in a nearly 30-year downtrend with some notable peaks and valleys against the U.S. dollar (USD). These have been largely due to seemingly endemic government corruption, frequent electric power outages around the country, a strong USD, and periodic investor uncertainties about emerging markets. Over the past five years or…

The dawn of the 21st century posed a collection of unique challenges to the world of finance. The dot-com crash of 2000 and the 11 September 2001 World Trade Center attacks (9/11) illustrated the fragility of the capital markets. Although the nature of each event was very different, both proved to be economic game changers. In many ways, the dot-com meltdown and 9/11 served as underpinnings for one of the…

On 7 January 2020, the World Health Organisation (WHO) identified the root cause of an influenza-like outbreak in the city of Wuhan, China. Referred to as the novel coronavirus (COVID-19), the highly contagious disease spread rapidly despite quarantines of affected cities and travel restrictions. By 10 March 2020, COVID-19 moved through more than 110 countries, resulting in approximately 113,702 confirmed cases and 4,012 fatalities. The economic fallout from COVID-19 was…

What Is The CAPE Ratio? The cyclically-adjusted price-to-earnings (CAPE) ratio is a variation on the standard price-to-earnings (PE) ratio that seeks to determine if stocks are in a bubble. While the more common PE ratio measures a stock or stock index's valuation over the next year or so, the CAPE ratio is calculated by using an average of corporate earnings over the past 10 years, adjusted for inflation. By using…

In 2016, Republican U.S. Presidential candidate Donald J. Trump built a campaign on a central theme of American prosperity through rebalancing foreign trade. To accomplish this goal, Trump proposed a complete overhaul of the North American Free Trade Agreement (NAFTA) and an intense review of U.S. policy toward China. Upon winning the presidency in November 2016, Trump's agenda was one step closer to becoming a reality. Throughout the Trump administration's…

Since 1788, every fourth year has brought an election for the Presidency of the United States. During such years, candidates from all walks of life dedicate their time, money and effort in an attempt to earn the highest American political office. While only a select few ever become the President of the United States (POTUS), the electoral process in itself is an institution. Presidential elections are often turning points in…

Historically, the outbreak of a rapidly spreading and life-threatening virus can quickly send global markets into chaos. Negative economic consequences are typically felt as trade and travel restrictions, as well as increased social welfare costs, spike investor trepidation. 2020 brought a harsh reminder of how devastating a viral outbreak can be with introduction of the novel coronavirus (COVID-19). Disease Outbreaks And The Markets According to the World Health Organization (WHO),…