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
Global Equity Markets advanced yesterday on lighter than usual economic data releases. In the U.S, the DJIA closed out its session at 10,414.14 picking up 85.25 points. U.S Treasury yields rose as well, signaling investors believe a recovery is under way just ahead of today's GDP print
The Japanese economy managed its smallest decline in export figures in 14 months in November. The data shows that Japanese exports are still falling, but the year-on-year data for November showed the decline to be 6.2% which compared very favourably to the figure of 23% for October.
The majority of Global Equity Markets finished last week slightly ahead looking week over week. Friday did see a sell-off ahead of the weekend in both the first and second sessions with only the DJIA advancing just marginally to close at 10,328.
Last week was another fairly mixed affair for the major stock exchanges with no very dramatic movement in either direction. In Europe, the FTSE lost 1.2% of its value, closing at 5196.8; the CAC was unchanged over the previous week’s close, it lost one point to close at 3794.4; the Dax closed up by 1.3% at 5831.21.
Despite the Greek government unveiling plans to secure a 10% cut in public spending, a second ratings agency has decided to downgrade the country’s credit rating.
Inflation, as we all know, is when the price for a commodity rises. When the inflationary pressures in an economy become too strong, governments and central banks will intervene to get it under control
The FOMC meeting came and went without stirring the waters. In the Euro-zone and London, Equity Markets finished their sessions in positive territory ahead of the highly anticipated U.S FED rate decision.
Global Equity Markets were mixed on Tuesday as Dubai continues to sort out its debt repayment obligations. In the U.S Producer Prices climbed 1.8% which was more than double expectations. This caused stocks to retreat as it may engage the U.S Fed to raise rates out of necessity instead of a planned withdrawal from its current quantitative easing policies.
Data released for the US economy in October point to a higher than anticipated rise in producer prices. The seasonally adjusted rise of 1.8% was the largest rise seen in 3 months, according to the US Labor Department’s Producer Price Index. One major culprit was the price of petrol which has risen by 14% because of higher crude oil prices. Core US producer prices were also up by more than expected, rising by 0.5% rather than the anticipated 0.2%.
According to the Royal Institute of Chartered Surveyors (RICS), the price of buying a home in the UK has now been rising for four straight months. This bubble is being inflated by a shortfall in the availability of houses on the market which means that vendors can ask more for their properties.
Last week was a fairly mixed affair for the major stock exchanges with no dramatic movement in either direction. In Europe, the FTSE lost 1.2% of its value, closing at 5261.6; the CAC dropped by 1.3%, closing at 3795.4; the Dax closed down by 1.1% at 5756.3.
Global Equity Markets closed higher as the prospect for a bona fide recovery now seems assured.
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.