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
If anybody imagines that the transition from recession to growth would be a smooth one, they are going to be disappointed.
Global Equity Markets were flat Tuesday. In the U.S the DJIA was up a mere 14 points while the Bond Market was up on the back of the largest 2 year Treasury auction to date.
Data from South Korea indicates that the growth rate in the economy is at its highest level for seven years. According to the Bank of Korea, the figures for Q3 2009 show GDP up by 2.9% in the previous quarter.
Oil is pretty much the life-blood of the global economy. To a first approximation, the price rises as economic activity and demand climb; so higher prices for crude are seen in some quarters as the herald that better economic times are ahead.
Economic parameters vary with great speed over the course of a trading day.
As we reported yesterday, the US Treasury announced plans to cap the pay of top executives from firms that received public money to keep them solvent during the worst of the crisis and have yet to pay it back.
The Bank of England monetary policy committee voted unanimously not to pump further money into the UK economy (the strategy known as “quantitative easing”) and to leave interest rates at 0.5%. This move was interpreted by the markets and foreign exchanges as meaning that the UK economy was recovering and was no longer in need of further financial stimulus.
Internet giant Yahoo! announced that its Q3 profits had trebled to $186 million, despite a 12% drop in its sales revenue which fell to $1.58bn. This miracle was achieved on the back of drastically reduced operating costs.
It could be said that crude oil genuinely lubricates the wheels of the global economy; it being essential to many sectors from plastics to transportation and energy generation when processed.
Last week was a quiet event overall for the world’s major stock markets with all indices ending the week in the black; albeit modestly.
A sudden and dramatic loss of confidence in financial institutions on the back of some extraordinary “sub-prime” lending decisions was what triggered the worst global recession since the Great Depression.
For the first time in a year, the Dow Jones Industrial Average has closed above the 10000 point level. It actually closed at 10015.86 which was its best level since last October.
Although the Japan was amongst the first to emerge from recession, things are still far from perfect in the world’s second largest economy.
Let’s start with the good news; the FTSE in London closed at its highest level for more than a year.
Last week was a much better one for the world’s major stock markets with all indices recovering ground over the course of the week. In Europe, the FTSE was up by 3.47%, closing above the psychologically important 5000 point barrier at 5161.9; the CAC put on a healthy 4.1%, closing at 3799.61; the Dax closed up by an impressive 4.46% at 5711.88.