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
Every cloud is said to have a silver lining. The US Dollar has been slipping in value against the other major currencies all year. It has shed 10% of its value against the Euro over the course of 2009.
Hard on the heels of credit rating agency Fitch’s downgrading of Greece’s credit rating, a second Eurozone country has attracted the concern of a credit rating agency. This time, the country in question is Spain and the agency is Standard and Poor’s (S&P).
Greece is a member of the Eurozone and it has the highest debt level within Europe and is the costliest to serve. In 2010, the debt burden is predicted to amount to 125% of the country’s GDP.
Global Equity Markets slumped on Tuesday as a wave of poor economic news and lowered rating caught the market off guard. In Japan, GDP printed less than forecasted, coming in at 1.3%. Fitch lowered its rating on Greece. In Dubai, the main developer reported a $3.65 billion loss contributing to the market's woes. The DJIA finished the session down 104.14 points to close at 10,287.97
As he seeks re-election for another term as Federal Reserve Chairman, Ben Bernanke has been telling the Economic Club of Washington that the US recovery remains fragile.
Global Equity Markets were off slightly Monday. A combination of light volume and a lack of any real economic data releases left markets essentially flat as traders continue to be risk averse heading into year end.
Last week saw all of the major stock exchanges making ground, with the Nikkei gaining ground significantly. In Europe, the FTSE put on 1.5% of its value, closing at 5322.7; the CAC was up by a very healthy 3.4%, closing at 3846.6; the Dax closed up by 2.3% at 5817.7.
The world’s major economies all established financial support measures to prop up their financial sectors and other key businesses during the worst of the global economic crisis.
The US government bailout package for the American financial sector had certain strings attached – he who pays the piper calls the tune.
The Dollar tumbled Tuesday falling just south of 74.30 on the DXY. The Kiwi was the big winner advancing 1.38% followed by the Pound at 1.03%. Meanwhile the JPY was the only major to lose ground to the Greenback as an emergency meeting of finance minister in Japan was convened to discuss the JPY's continued strength.
The Bank of Japan has announced that it will inject 10 trillion Yen into the Japanese economy. The move is intended to improve liquidity within the economy and allow businesses to borrow money more easily.
The Japanese stock exchange has been loosing ground compared to the other major indices. The yen is enjoying sustained strength against the other major currencies, yet the country is in a deflationary cycle; has a near zero interest rate policy and high unemployment.
It was a mixed day for the Global Equity Markets on Friday following Dubai's debt default announcement the day before. The markets in Asia continued to sell off while in Europe they apparently felt the exposure was sufficiently contained.
Last week saw most of the major stock exchanges stand still, except for the Nikkei which lost ground significantly. In Europe, the FTSE shed just 0.11% of its value, closing at 5245.7; the CAC was down by 0.21%, closing at 3721.5; the Dax closed up by 0.41% at 5686.6.