FXCM Research Team

Over the course of human history, certain periods of time have proven especially tumultuous. Racial divides, famine, pandemic and political upheaval all pose unique challenges. In some cases, these events stimulate extreme social conflict. From the late-18th century French Revolution to the end of South African aparthied 200 years later, civil unrest has been a disrupter of financial markets, economic systems and the global currency exchange. Although the forex is…

Since March 2020, the European Central Bank (ECB) and the European Union have announced several major economic stimulus programmes and policy measures to protect businesses, consumers and institutions in the eurozone from the effects of the coronavirus. The ECB and the EU, in particular, are more limited in what they can do compared to sovereign countries, such as the U.S. and U.K. and their own member states. European Central Bank…

Canadian Government On 13 March the government announced the creation of a CA$10 billion Business Credit Availability Program (BCAP) to support financing in the private sector through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). Under this program, BDC and EDC will increase their cooperation with private sector lenders to coordinate financing and credit insurance solutions for Canadian businesses. The government also announced a series of…

United Kingdom Government Since March 2020, the government of the United Kingdom and the country's central bank, the Bank of England, have announced several major economic stimulus programs and policy measures to protect British businesses, consumers and institutions from the effects of the coronavirus. The government's support is mainly focused on supporting businesses and individuals through subsidized and government-guaranteed loan programs, outright grants, and tax and payment holidays. Coronavirus Business…

United States Government As the world's largest economy, the U.S. has been at the forefront of taking the initiative to help its citizens and businesses survive financially during the shutdown and help them get back on their feet afterward. The main action taken by the government was the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a more than US$2 trillion economic relief package that includes several important programs and…

The Canadian banking system is generally considered to be one of the safest in the world. According to Global Finance magazine's annual listing of the world's safest banks based on their credit ratings, eight Canadian banks ranked in the top 40 in 2019, including those ranked 11 through 13. Canadian banks captured the top six positions in the ranking of the safest banks in North America. Regulation One of the…

What Is A Haircut? A haircut in finance has several meanings. It most commonly refers to the reduced value of a financial asset for purposes of calculating capital requirements, a lending margin or collateral level. It also refers to a loss an investor may have to take or accept on an asset. It means the difference between the bid and asked price of an asset as well, with that difference…

What Is A Bank Stress Test? Bank stress tests are administered by some of the world's major central banks to assess the ability of the largest commercial banks they oversee to withstand a major crisis in the economy and financial markets. Stress tests were largely instituted following the 2008 global financial crisis and have become a regular annual exercise in developed economies. In the U.S., for example, annual stress tests…

What Is A Discount Window? The discount window is the mechanism through which central banks lend short-term money to the commercial banks under their authority, both to provide liquidity to the financial system and to manage their monetary policies. In the U.S., commercial banks—both based in the country and foreign-based—can borrow from the discount window at the 12 regional Federal Reserve Banks located around the country. Each of the 12…

The Australian financial system is regulated by the Australian Prudential Regulation Authority (APRA), which oversees "authorised deposit-taking institutions" such as banks, building societies and credit unions. It also regulates insurance companies and "superannuation," or pension, funds. APRA was created by the Australian government on 1 July 1998. The agency is tasked with "maintaining the safety and soundness of financial institutions, so that the community can have confidence that they will…

ZARUSD Currency Pair The rand (ZAR) has been the official currency of South Africa since 1961 when the country first became a republic. As the biggest US trade partner in Africa, in 2018 South Africa traded a dual value of US$14 billion. United States is the third-largest trading partner to South Africa, and a dual bilateral trade agreement has been in existence since 1994. History Of ZARUSD In 1789 the…