FXCM’s US.BANKS basket responds positively to banking stress test
On Wednesday, the Federal Reserve released the results of their annual bank stress test. All 23 banks that were included passed the test, weathering a severe recession scenario, continuing to lend to consumers and corporations.
In its release, the Fed said that despite facing projected losses of $541 billion, the banks successfully upheld minimum capital requirements, managing to extend credit to the economy during the hypothetical recession.
This has set up banks to return cash to shareholders. Following the end of regular trading on Friday, banks are anticipated to unveil revised strategies for buybacks and dividends. Given the possibility of a recession later this year or early next year, banks will likely adopt a cautious approach when formulating their capital plans.
Nevertheless, FXCM's US.BANKS basket has responded positively. Yesterday, it charted a long and positive candle (blue arrow), which lays the platform for possible higher prices ahead..png)
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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