Forex Fundamental Analysis

A further sign of recovery in the Eurozone is that orders for factory goods have seen a fourth straight month of rising demand in October.

Last week’s trading was a mixed affair on the world’s major markets.

India is the world’s largest democracy and a member of the so-called BRICS group of emerging economies (Brazil, Russia, India, China and South Africa).

With Ben Bernanke at the helm for a few more months, the good ship US Federal Reserve is to continue on course and speed until further notice, much as everybody was expecting.

The Spanish economy has emerged from recession after two years according to the official Spanish statistical body, INE (Instituto Nacional de Estadistica).

Preliminary data suggests that the UK economy grew by 0.8% in the third quarter of the year. This level of growth is the fastest rate seen since the second quarter of 2010.

Last Friday marked the final trading session for October from the perspective of these summaries.

The Spanish economy is the fourth largest within the Eurozone behind Germany, France and Italy and is the 13th largest economy in the world.

The Australian economy is the 12th largest in the world and was the only developed economy not to go into recession during the Global Financial Crisis.

The US unemployment figures are always carefully scrutinised as a barometer of the wider US economy. However, the Federal Reserve has tied its “Tapering” activity to a threshold unemployment level of 6.5% and the condition that inflation is below 2.5% before it starts.

JP Morgan has been fined $13 billion for mis-selling mortgage-backed assets (MBA also known as mortgage-backed securities, MBS) in the lead up to the Global Financial Crisis.

All of the world’s major markets ended higher on the strength of the bipartisan agreement to fund the US government and authorise a raise in borrowing – at least until the New Year.

With budget funding secured to cover expenditure for the Federal government until mid-January, the remainder of the 800000 government workers who had been “furloughed” since the beginning of the month have now returned to work.

The only surprise in the last minute solution to the US debt crisis was that American lawmakers should ever have placed themselves voluntarily in a situation where the world’s largest economy risked a default on its debt obligations.

Whilst the world watches the drama being played out in the US House of Congress and the Senate which will determine is the United States voluntarily allows itself to default on its debts, ratings agency Fitch’s has been fastest to react.