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Research Outline

Prepared for Issouf | Delivered November 29, 2019

Forex Market Trends/Updates

Goals

To find out what has been happening in the foreign exchange (forex) market recently. This research would be used to evaluate new market opportunities and rules for clients.

Early Findings

  • The foreign exchange (forex) market is currently "the most actively traded market in the world".
  • On average, this market witnesses trading worth over $5 trillion daily. The volume of forex trading exceeds that of global equities by 25 times.
  • DailyFX reports that global trade is decreasing. This is a resultant effect of trade wars led by the United States. Consequently, GDP growth is being affected adversely throughout the world.
  • According to AtoZ Markets, 2018 was a remarkable year for the USD (United States Dollar) "when the trade-weighted Dollar Index appreciated nearly 5%".
  • From the beginning of this year (2019), the USD experienced a zero forward momentum.
  • As Chinese clients reduce their spending, the pressure on US businesses is increasing.
  • Over the past year, the Canadian Dollar (CAD) lost over 7% of its value against the USD. Also, 10% of its value was lost compared to the Japanese Yen. Falling oil prices is the major factor responsible for this decline in CAD currency value.