Forex Fundamental Analysis
Forex Fundamental Analysis
Appropriately enough, the etymology of the word “Chaos” stems from the Greek word “khaos” – meaning a vast void or chasm, originally.
Opinion polls show that the Greek people want to remain within the Euro. It is probably also true that the Greek government desires to remain within the Euro. Find out what the expert traders at DailyForex.com think about the current Greek crisis here.
With the dramatic events of Friday and Saturday still being considered, the European Central Bank (ECB) met on Sunday and decided that it would not extend Emergency Liquidity Assistance (ELA) to the Greek central bank above its current level of €89 billion.
Last week saw the final trading session for the week, the month and the quarter from the perspective of these summaries. Much of that time has been pre-occupied with the Greek crisis which seems to have come to a head now.
Negotiations between Greece, the IMF and organs of the European Union came to a head on Friday. Most people had expected that some kind of 12th hour (it was that late) deal would be struck which would allow the left-wing Tsipras government to save face, but deliver some of the structural reforms that the major creditors had demanded
The current Greek crisis was caused by the failure of the outgoing government to get its nominee for president approved within the permitted three attempts.
Whilst all eyes are on Brussels and Athens for a conclusion to the Greek debt drama (with Tsipras seemingly trying to bite the hand that feeds him and new heights of brinkmanship being raised on a daily basis), the current scorecard for Eurozone business output (naturally including Greece) is out.
The nature of economics is cyclical, but anybody waiting for a definitive turn to the up-cycle after the global financial crisis could probably be forgiven for doubting it.
Last week was a mixed affair for the major stock markets with the US markets gaining and the rest slipping. Get the analysis for the week of June 22, 2015 here.
US interest rates have been held at near zero since 2008, so the speculation about a rise has rumbled on for seven years now.
In most democratic nations the central bank is independent of government control since it is recognised that monetary decisions ought to be free of party political considerations.
It looks as if Europe’s brief flirtation with falling prices is ending. Whilst demand for goods within the EU has been weak (certainly, in historical terms) which may have generated a modicum of deflationary pressure, the driver for deflation was the sharp decline in the price of crude oil.
Whilst all of the mainstream UK political parties want the nation to continue to be a member of the European Union, there must be a chance that the people will be unimpressed with whatever deal Prime Minister David Cameron can conjure up with Brussels and will vote to leave the EU.
Last week again saw all of the major stock markets fall with the exception of the Dow Jones. Get the analysis for the week of June 15, 2015 here.
Unless Greece can reach a deal with its major creditors the IMF and the Eurozone before the end of the month it will be unable to pay its debts and will fall into a sovereign default.