The following are the most recent pieces of Forex fundamental analysis from around the world. The Forex fundamental analysis below covers the various currencies on the market and the most recent events, announcements, and global developments that affect the Forex market.
Forex Fundamental Analysis
Forex Fundamental Analysis
The news that leading central banks would act in concert to improve financial sector access to Dollars and boost liquidity, buoyed the markets last week. News that France and Germany were proposing a tighter fiscal union within the Eurozone and that the ECB was prepared to act more aggressively to support the Euro also helped to bolster confidence.
The Euro has been doing a very fair impression of a yoyo in recent months. The downswings happen whenever markets react badly to news on the national level, pushing government bond yields higher and the Euro lower. In the absence of news, speculators gradually push the currency higher.
The basic thing about banks (commercial banks) is that they make money by taking in deposits and offering loans. The interest on savings is always a good bit less than the interest payable on a loan, so banking is a profitable business.
The central banks of Switzerland, Canada, Japan, the United States, England, and the Euro Zone have all stepped into the markets by lowering swap rates for Dollars on Wednesday.
America has just celebrated its Thanksgiving holiday and that is traditionally seen (in commercial terms at any rate) as the start of the festive season. Every year, may consumers spend more than they can afford at this time of year (even in the good times) and since domestic expenditure accounts for roughly 70% of American GDP, it is always a critical time for retail businesses.
While the entire world frets about the European debt crisis, it makes sense that most traders are focusing solely on the EUR/USD currency pair. The headlines come out and push this pair up and down in violent movements that can make for sudden profits.
Greece has plunged the Eurozone into a crisis which is sending shock waves around the world due to the inter-connectivity of the business world. The Greek sovereign debt crisis has been triggered by a debt of €310 billion – Italy, the next performer to take to the stage in Europe, has debts in excess of €1 trillion.
Friday was the end of the month as far as these summaries are concerned. November has been dominated by political uncertainty and on-going concerns about the sovereign debt crisis in Europe. All of the markets ended the week lower.
Perpetually falling prices sounds like a consumer’s dream, but in economic terms, deflation is a bad thing.
In one of the most ominous signs we have seen so far out of Europe, the Germans only managed to attract buyers for a little more than half of the 6 billion Euros’ worth of their 10-year bunds on Wednesday. The Germans are seen as a backstop to the entire issue coming out of Europe.
Germany has been at the heart of provision of funding to bailout peripheral economies which have got into sovereign debt problems since the onset of the global financial crisis – despite what the papers may say, this is neither charity nor altruism.
Early estimates put the growth of the American economy in the quarter between June and September at 2.5%. However, as real figures have come in, this estimate has had to be trimmed back, revealing that the world’s largest economy grew by 2% in Q3.
With the current issues in the European bond markets, it is easy to think the Euro should be melting down. Is it? Find out why EUR/USD isn't as easy to trade as always.
Hungary joined the European Union in 2004, just 15 years after leaving the communist block and emerging from behind the Iron Curtain. Whilst the nation is an EU member, it did not join the Eurozone and has retained its own currency, the Hungarian Florint.
Technocrat leaders have been installed in Greece and Italy and the Spanish government fell at the weekend. The significant economic problems facing Spain are now the concern of the Popular Party (conservative).