Forex Fundamental Analysis

If one had to produce a tag-line for 2014 a la Chinese Zodiac (2014 was apparently The Year of the Horse), The Year of the Financial Scandal, might just win the honour.

The American consumer has returned in full force. Consumer spending has climbed 0.6 percent in the last two months, according to figures from the U.S. Commerce Department. Households have splurged on major appliances, 4x4’s, televisions and clothing, boosting the economy at the fastest pace in 11 years.

Usually, gamblers make their money when speculating on commodity prices by betting that the value will rise, allowing them to sell their holdings at a profit.

Last week saw the major markets reversing the losses of the previous week, despite global demand remaining soft and the oil price at a fresh five-year low.

Switzerland lies at the geographical heart of Western Europe. It is a member of the European Free Trade Association and has its own currency, the Swiss Franc.

Despite a full-blown currency crisis in Russia and increasingly volatile markets in the U.S., the price of gold has hardly moved.

To anybody who has been following financial news for any length of time, the “news” that the US Federal Reserve intends to follow a patient approach to raising interest rates does not qualify as news at all.

The Russian Rouble has been under pressure this year, falling from 32.61 against the Dollar in December 2013 to hit a record low of 79 yesterday before rallying somewhat to trade at 69.24 at the time of writing.

On Sunday, the Japanese went to the polls – or more accurately, some of them did. A shade over half of Japanese citizens who were eligible to vote bothered to do so; the turn-out was 52%, the worst figure since 1947.

Last week saw the end of a recent Bull Run for the major markets with all of them losing ground on continuing concerns of weak global demand, in part heralded by oil prices hitting fresh five year lows.

China’s central bank, like many other central banks, targets a specific level of inflation, in China’s case it is 2%.

The incumbent Greek President’s term ends in March 2015. Replacement of President Karlos Papoulis is the responsibility of the Greek parliament and requires the support of 180 MPs from a total of 300 lawmakers.

The percentage of the US workforce without gainful employment, actively seeking work and claiming benefits remained unchanged at 5.8% in November.

Last week was another largely positive for the major markets with only the US’s Nasdaq losing ground. Get the analysis for December 8, 2014 here.

November was a good month for U.S. employment as the largest number of workers in three years joined the labor force. In addition, wages were up, another indication that the economy was strengthening.