How has the trade trade trade trading trade trade has changed changed over time?

Here, we take a look at how has trade changed over time. Post-war investment was very different to the trading opportunities of today. The Great Depression, along with two world wars, had impacted the Stock Market such that very few people owned common stock.

What is FX swap activity?

FX swap activity that bridges from one calendar year to the next is sometimes described to be including “the turn” or trading “the turn”. The end of the year typically sees a bump in funding rates as cash is repatriated and applied to corporate and banking balance sheets.

How does the year-end period affect the futures market?

Secondly, the impact can be shown to be related to the year-end period by looking at the implied rates for different futures maturities. Rate differentials increase more for the January expiry compared to the February or March expiries.

How does supply and demand affect FX swap prices?

While this is true around the world, the demand for U.S. dollars over this period is often hugely more pronounced – creating strong supply and demand forces that impact FX swap pricing, potentially taking market prices away from where the interest rate differentials suggest they should be.