Forex Fundamental Analysis

Figures just released by Chinese authorities show that the nation imported more goods than it exported in February, leading to a rare trade deficit with the rest of the world.

China has usurped Japan as the world’s second largest economy and its economy has been leading the world out of recession with strong growth figures.

Ratings agency Moody’s has decided to downgrade the status of Greek debt to “highly speculative”; changing the rating from Ba1 to B1. According to Moody’s, the move is justified because of problems caused by “endemic tax evasion” a “very ambitious” austerity plan

Political tensions are still pushing the oil price and feeding nervousness into the markets. In Europe over the course of the week, the FTSE shed 0.18%, closing at 5990.4; the Dax fell by just 0.08% to close at 7178.9; the CAC fell by 1.2% to end the session at 4020.2.

On Thursday, the European Central Bank decided to keep rates on hold at 1% for the 22nd consecutive month. Whilst Eurozone at 2.4% is above its target level of 2% and is expected to exceed the target for most of this year, in historic terms, it is at a low and stable level.

As the world gradually recovers from the global financial crisis, many leading economic nations are still at historically low interest rates.

Based in Geneva, Switzerland, the World Trade Organisation (WTO) is an international body with a mandate to improve global prosperity by ensuring that barriers to trade between nations are eliminated. This simple concept is easily expressed, but, as they say, the devil is in the details.

Australia was the only major western economy to avoid going into a technical recession during the global financial crisis (defined as two successive quarters when the economy contracts) and it was the first economy to increase interest rates when the worst of the trouble had passed.

Last week saw all of the world’s major stock markets close lower, hardly a surprise in view of the current political instability in Africa and the Middle East. Find other important market reviews here.

There was mixed news last month for America’s home owners. On the positive side, sales of existing housing stock within the US rose by 2.7% in January which implies that buyers are returning to the market.

Oil is a crucial commodity for the global economy. It can be refined to make a huge array of products from lubricants to fuels and from plastics to pharmaceuticals. The price for oil can be seen as a barometer for the outlook for the global economy – in times of recession, demand falls and the price declines.

As we pointed out yesterday, Japan is not having the best time of it right now. It has recently been officially eclipsed by China as the world’s second largest economy, deflationary pressures persist and consumer outlook remains bearish.

Japan is not having the best time of it right now. It has recently been officially eclipsed by China as the world’s second largest economy, deflationary pressures persist and consumer outlook remains bearish.

Last week saw all of the world’s major stock markets close higher for a third consecutive week.

Finance ministers from the world’s 20 most advanced economies will soon meet in Paris, where they will discuss the perennial questions of trade imbalances and artificial control of currency values as a tool to help exports. They will also tackle the very real problem of food price inflation and hikes in other essential items such as fuel.