Forex Fundamental Analysis

Remember the 1970’s and how high oil prices forced drivers to switch from Detroit-made gas-guzzlers to Japanese mini-cars? The United States government woke up to the reality and set about getting more strategic about how it used fossil fuel.

In what optimists will see as a sign of times returning to normal, the US Federal Reserve announced an end to its asset purchase programme on Wednesday.

The idea that prices will be falling with time might seem like manna from heaven for consumers at first sight, but received economic wisdom suggests that it can trigger falling demand and ultimately increased levels of unemployment.

At the height of the Global Financial Crisis, nations around the world felt obliged to pump public money into certain, critical banks to ensure that they didn’t fail.

Britain is a member of the European Union, but is not a Eurozone economy, having decided against joining the single currency to date.

Last week saw all the world’s major stock markets recovering some ground, partially reversing the falls of recent weeks. Get the fundamental analysis for October 27, 2014 here.

The fastest growing consumer markets in 2014 are not China, India or Brazil. According to a new report from Euromonitor International, the fastest growing consumer markets in the world are not obvious at all and will come as quite a surprise to most economists.

Since mid-August, the Yen has fallen significantly against the US Dollar, falling from the 102 Yen to a Dollar level to a low of almost 110 before rallying a little on fears of a global slowdown .

In those far off, halcyon days before the Global Financial Crisis hit, four nations were being touted as the next big economic superstars.

In theory, a nation can’t run at a loss. The difference between what it spends on social security, defence, education, healthcare and so on must balance the receipts that it receives in various forms of taxation, so any shortfall must be made up from public borrowing.

Russia is embroiled in the instability in the Ukraine, although it strenuously denies that it has troops on the ground in the neighbouring state.

Last week again saw all the world’s major stock markets losing ground on continuing fears of a global economic slowdown with the one exception of the Dax which managed to rise.

It has been suggested that recent falls in global stock markets are linked to the Ebola tragedy in Africa which has claimed almost 4500 lives and is certain to result in many more deaths before the outbreak is brought under control or burns itself out.

Part of the reason for the success of the Celtic Tiger economy was that Ireland made it attractive to multi-national corporations to base their European Headquarters in the Republic through highly competitive rates of corporation tax.

Mark Carney is the first Canadian to be governor of the Bank of England and seems to be a very astute individual.