FXCM Research Team

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…

Market observers have repeatedly thrown around the word "depression" to describe a severe economic downturn. However, when it comes to pinning down a specific definition of this term, there is no consensus. This article will explore the aforementioned concerns, reviewing varying definitions and the different ways to measure the severity of a downturn. What Is The Difference Between A Depression And A Recession? One good way to explain a depression…

Eskom is a 100% state-owned electricity company that provides energy to greater South Africa (SA). Featuring 30 power plants and a nominal generating capacity of 44,172 megawatts (MW), Eskom services 6.2 million direct customers. Given its massive size and government-sponsored status, the utility conglomerate is the backbone of South Africa's energy infrastructure. Unfortunately for the country's economy, Eskom has fallen on hard times. Widespread corruption, rising operational costs and staggering…

Throughout the COVID-19 pandemic of 2020, emerging market (EM) currencies faced a collection of unprecedented challenges. As a result, many EM currencies experienced a swift devaluation due to falling commodity prices and a large-scale migration to financial safe-havens. Although renowned for their volatility, these currencies encountered extreme forex turbulence as COVID-19 brought the global economy to a standstill. What Is An Emerging Market Currency? An EM currency is one that…

During periods of crisis, gold has proven to be a time-honored safe-haven asset. Scarcity and built-in utility have made the yellow metal a sought after commodity throughout recorded human history. Whether in physical or paper form, gold bullion is the world's go to financial hedge against uncertainty. Gold's validity as a financial safe-haven underwent a formidable test during the novel coronavirus (COVID-19) pandemic of 2020. Traders, investors, central banks and…

In response to the COVID-19 pandemic and ensuing economic chaos, governments and central banks around the world have created and rolled out dozens of financial rescue and economic stimulus plans to shield individuals and businesses affected by the lockdown in response to the coronavirus pandemic. Below, you can find links to our guides covering major countries' responses to the pandemic, both by the governments and their central banks. We will…

What Is A Recession? When a country's economy grows, its citizens benefit as the value of services and goods increases—namely the gross domestic product (GDP). By contrast, when a country faces a period of economic decline there is a marked reduction of trade and industrial production. When this happens across two quarters, the overall GDP declines, and the economy is said to be in a recession. History Of Global Recessions…

Established as the official currency of Japan by the Meiji government in 1871, the yen (ISO code: JPY ¥) is the third-most used currency in the world. With a long history of zero interest rates and little effect on the stimulation of the economy, the yen has been the world's biggest investor, and the preferred Asian reserve currency for decades. In the Japanese Edo era, a central bank had not…

The most important stock index in the U.K. is the FTSE 100, which tracks the performance of the 100 largest companies in the country based on market capitalisation. The index, which is pronounced commonly as the "Footsie 100," was created in January 1984. At that time, its baseline value was established at 1,000 points, although stock prices were calculated retroactively back to 1969. In this article, we cover the 10…

What Is An ETF? Exchange-traded funds (ETFs) are investment vehicles similar to mutual funds that hold a portfolio of securities, such as stocks, bonds, currencies, commodities and other assets. ETFs differ from mutual funds in that they are often designed to match the performance of a specific index and are therefore usually passive, while mutual funds are typically actively managed in order to try to outperform a specific index. ETFs…