"Globalization has created this interlocking fragility. At no time in the history of the universe has the cancellation of a Christmas order in New York meant layoffs in China." This quote from Nassim Taleb, respected scholar, risk analyst and author of the New York Times best-seller “The Black Swan” highlights how our world economy is more integrated than ever before. At the foundation of this increasing economic globalization is the foreign exchange market, the single largest and most liquid market in the world, which reached 5.3 trillion US dollars in average daily turnover in April 2013.
This information packed FX Market Overview course is designed to help finance and accounting professionals, as well as those interested in or exposed to the foreign currency market, scale the learning curve quickly and easily. The overarching goal of this program is to share the essential knowledge needed to understand the fundamentals of the foreign exchange market, to clarify common misunderstandings, and to navigate this 24/7 365 global market in an efficient and effective manner in pursuit of accomplishing international business objectives.
Would you like to know the many ways Apple is exposed to the FX market? Can you recognize a direct versus an indirect currency quote in the newspaper? Are you interested in how business and government participate in the FX market? Do you want to know how economists use technical and fundamental analysis techniques to forecast exchange rates? Have you wondered how the shift in time zones across major FX centers impacts trading volume and liquidity worldwide? If you are curious about any of these questions, make sure to attend this FX Market Overview program to get answers.
While there are plenty of courses that teach FX trading for the retail investor, this unique program focuses on multinational corporations that are seeking to deliver better currency risk management results to the bottom line. Join foreign exchange industry expert Evan Mahoney, CPA for this 1 hour program as we highlight the major trends and significant factors that are shaping the foreign exchange market. Upon completion of this program, you will clearly see how the currency market plays an incredibly large and important role in the macro-economy, is inextricably linked to economic globalization, and serves as the core mechanism for enabling international trade.
This introductory lecture outlines the 4 learning objectives that will be covered in this 1 hour course, which include (1) to explore the concepts of Economic Globalization and International Trade, (2) to discover how the foreign exchange market is evolving and how it operates, (3) to identify the four main categories of foreign exchange market participants, and (4) to recognize how supply and demand impacts foreign exchange rates and forecasting. You will have a good understanding of the content that is covered in Lectures 2 through 5 by watching this introduction.
The terms Economic Globalization and International Trade will be defined, and data provided by the World Trade Organization and the World Bank will be used to observe recent trends in the macro-economy. Also, notable milestones and phases of transition that have helped accelerate economic globalization and international trade since the early 1970’s will be highlighted. Evidence of recent trends in the data and notable milestones will help reveal that the world is moving at an accelerated pace towards further global economic integration.
The growth trajectory of trading volume in the foreign exchange market over the last decade will be examined using data provided by the Bank for International Settlements in their Triennial Central Bank Survey. The wide range of currencies in circulation throughout the world will be presented using the globally recognized International Organization for Standardization’s ISO 4217 currency code list. The concept of direct and indirect foreign currency quoting conventions will be explained as well as how to distinguish which convention is used when observing published quotes for major currency pairs. The 24 hour nature of foreign exchange market operations will also be reviewed to underscore how the shift in time zones across major FX centers affects trading patterns and impacts volume and liquidity at certain times of the day.
The four main groups of foreign exchange market participants will be categorized, which include foreign exchange dealers, financial and non-financial customers, central banks, and foreign exchange brokers. Multinational corporations, which fall under the category of financial and non-financial customers, will be elaborated on using Apple Inc. as an example. The financial results from Apple’s fourth quarter in 2015 will be used to highlight the substantial foreign exchange risk related to their sizeable international revenue generation. Also, Apple’s Offshore Organizational Structure that was released in May of 2013 during their testimony before Congress will be used to profile their operations domiciled in different parts of the world, and demonstrate how foreign exchange risk management is an inherent and necessary aspect of their business model.
The introduction of free-floating exchange rates in the 1970’s will be discussed, and the specific forces that influence supply and demand and determine exchange rate values will be examined. Also included will be a review of the two FX forecasting techniques known as technical analysis and fundamental analysis to demonstrate how market participants can assess supply and demand factors to develop an educated guess about what direction exchange rates will move in the future.
This concluding lecture summarizes the 4 learning objectives that were covered in this 1 hour course, which included (1) exploring the concepts of Economic Globalization and International Trade, (2) discovering how the foreign exchange market is evolving and how it operates, (3) identifying the four main categories of foreign exchange market participants, and (4) recognizing how supply and demand impacts foreign exchange rates and forecasting. You will recall the content that was covered in Lectures 2 through 5 by watching this concluding lecture.
This Review Quiz will test your knowledge on the learning objectives covered in the FX Market Overview program. The Review Quiz consists of 3 questions with reinforcement feedback for correct and incorrect responses.
This Final Exam will test your knowledge on the learning objectives covered in the FX Market Overview program. The Final Exam consists of 5 questions without reinforcement feedback.
Founder and President of FX Initiative, an independent informational platform focused on foreign exchange. FX Initiative delivers foreign exchange (FX) continuing professional education (CPE), examples and events focused on currency risk management. Our mission is to make complex foreign currency matters simple and manageable by helping corporate treasuries, sales professionals & independent advisors deliver effective currency risk management results in a time efficient manner.
Founded in 2010, FX Initiative works with both Fortune 500 companies and small and medium-sized enterprises (SMEs) to help them understand, identify, assess and mitigate foreign exchange risk. Additionally, FX Initiative has developed and/or reviewed over 500 continuing professional education (CPE) programs from over 100 unique thought leaders in the finance, accounting, and treasury profession. FX Initiative is an unparalleled resource for foreign exchange risk management and continuing professional education.
FX Initiative is registered with the National Association of State Boards of Accountancy (NASBA) in the National Registry of CPE Sponsors under Registry ID 112915, and delivers QAS self study, group internet based, and live training programs. FX Initiative is committed to developing continuing professional education (CPE) programs in accordance with nationally recognized standards, and aims to promote the highest quality and most innovative lifelong learning as it relates to currency risk management best practices.
Prior to founding FX Initiative, Evan worked as an Assistant Vice President in Wells Fargo's national foreign exchange risk management group. He graduated cum laude from the Finance Honors Program at DePaul University in Chicago, and is a licensed Certified Public Accountant (CPA) in the state of Illinois. Evan became interested in foreign exchange while attending international business seminars in Thailand, Vietnam, Spain, Chile, Argentina, and Uruguay, where he met with various foreign governments, businesses and universities.