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 Euro weakened on Monday against both the Dollar and Yen as ratings agencies downgraded two Eastern European nations, Estonia and Latvia. Speculation has thus risen that a wave of credit reductions may sweep across the “third tier” economies which have joined the EU in recent years.
We believe that the U.S. Dollar has reached an inflection point. For the past several months, the Dollar has declined on “good news” indicating that the two-year global crisis was drawing to a close and that economic data was showing gradual improvement.
The effects of last week’s surprise decision by the Bank of England to intensify their quantitative easing program continue to ripple through the markets.
The Bank of England’s Monetary Policy Committee surprised many observers Thursday by increasing the size of its quantitative easing measures by an additional £50 billion.
The Dollar has continued to trade weakly against other major currencies as global equity markets have extended their surges to post-crash highs.
The Euro, the Canadian dollar, and the U.K.’s pound, have all been gaining against the dollar and yen today in response to the U.S. economy contracting less than expected in the second quarter.
The Japanese Yen gained ground against major currencies on Tuesday as a decline in U.S. consumer confidence spooked investors.
Challenging the recent rally in stocks that has taken some by surprise and driven the markets higher in a surprisingly smooth ride, short interest in S&P 500 futures has been building up since May 2009.
New home sales continue to rise, carry trades are back in the spotlight, and predictions of resurgent global market proliferate.
The British Pound strengthened against both the U.S. Dollar and Japanese Yen on Monday, as traders again moved away from safe-haven currencies after better-than-forecast home sales data was released in the United States.
The U.S. Dollar is expected to continue its recent declines as corporate earnings reports give traders hope that an economic recovery is starting to take hold.
We expect continued pressure against the Dollar so long as corporate earnings and economic data point towards an eventual recovery towards the end of 2009.
The British Pound surrendered early gains as economic data revealed continuing problems for the U.K. economy.
Weakness in the U.S. Dollar has continued in recent sessions as traders are willing to place riskier bets in light of better-than-expected corporate earnings data. The safe-haven Dollar and Yen trades have both suffered from the move towards higher-yielding currencies.
The British Pound was weak against major currencies as an economic research institute projected continued declines in GDP and housing prices and warned that a substantial recovery may not occur for several years.