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 Chairman of the Federal Reserve has been stating his view that the US economic recovery is underway for some time now.
Figures released yesterday, show that Japan is in a deflationary phase. For the sixth consecutive month, consumer prices have fallen in the world’s second largest economy.
Economic parameters vary with great speed over the course of a trading day. For this reason, it is useful to look at data over a slightly longer term to gain an insight into any trends that might be emerging which can be exploited for your investment strategy.
Japan recently joined the post recession club with the likes of France, Germany and New Zealand. Yet, figures just released for Japanese exports in August showed that they were down by 36% on the previous year’s level.
If you are a European tourist, America is the best value for money that it’s been for more than a year right now.
Ahead of the Pittsburgh meeting of the group of 20 strongest economies (G20) later this week, speculation has been raised that leaders will call for changes as to how the world’s economy should run.
According to The Bank of England, Sterling may become a long term victim of the recession, settling at a lower level than other major currencies (of course, this has all the hallmarks of a self-fulfilling prophesy).
With the exception of the Nikkei, all of the world’s major stock markets gained ground over the course of last week, continuing the trend of the previous week. In Europe, the FTSE put on a further 3.2% of its value, closing at 5172.9; the CAC gained 2.5%, closing at 3827.8; on the back of the previous week’s strong gains, the Dax still managed to close up by 1.4% at 5703.8.
The world’s second largest economy is powered by exports to the rest of the world. When the misery of recession settled on the global economy, it tended to hit exporters worse than home-based manufacturers. For the Japanese, there is also the complication stemming from their long-running zero interest rate policy to be added to this.
When recession bites, businesses lose sales, but their overheads remain. Ultimately, there comes a point where they will have to shed the workforce to save on costs; often there is little work for employees to do since demand is down.
Yukio Hatomaya, of the Democratic Party of Japan (DPJ), took office yesterday as prime minister of the world’s second largest economy, ending 50 years of rule by the Liberal Democratic Party of Japan.
There is a curious balance in the global market place between cheap imports, on the one hand, which drive consumer spending and generate profits for the middlemen and loss of domestic jobs from the competing sector on the other. Whilst we all like to have high quality cheap products, we don’t want it to be at the expense of the destruction of thousands of jobs at home.
Over the course of last week, all of the world’s major stock markets gained ground; reversing the trend of the previous week. In Europe, the FTSE put on 3.3% of its value, closing at 5011.4; the Dax gained ground to the tune of an impressive 4.45%, closing at 5624.02; the CAC made 3.8%, closing at 3734.89.
The statement was made by UK Prime Minister Harold MacMillan in 1957 about the state of Britain’s post war economy. But you could well hear it from central bankers almost anywhere in the developed world these days, if they were talking about the cost of borrowing money.
At some time in childhood, most of us looked at a copying machine and asked our parents why, if we were short of cash (and most people were) we couldn’t just print some more money.