Forex Fundamental Analysis

Although Daniel Defoe may have been the first to use it, Benjamin Franklin is credited with the popular coinage of the expression “in this world nothing can be said to be certain, except death and taxes.

As Spain battles to overcome the chaos left behind when a speculative building boom and property bubble burst at the height of the global financial crisis, plunging the banking sector into crisis, there is a ray of good news. For the first time in more than forty years; since 1971, Spain has posted a trade surplus. The difference in the value of goods which Spain exported to what the nation imported March was €634.9 million.

The genesis of the European Union can be traced back to the post war period when six nations formed the European Coal and Steel Community. Part of the European project has always been political – to the extent that it sought to ensure that there would never be another European war with all the suffering and destruction that it would bring.

At the end of last week’s trading, all of the world’s major markets again ended higher. In Europe over the course of the week, the FTSE was up by 1.5%, it closed at 6723.1; the Dax ended at 8398, rising by 1.4% over the course of the week; the CAC was up by 1.2% to end the session at 4001.3.

Figures released for the Eurozone and US economies show that inflation in both regions is well under control and has fallen below the 2% target set by the European Central Bank and the US Federal Reserve.

Japan is currently the world’s third largest economy. Much of the nation’s economic strength stems from global demand for its export goods. However, demand for Japanese products has been under pressure because of weak global demand, a factor exacerbated by the recent strength of the Yen.

The preliminary figures for how economies have fared during the first quarter of 2013 are being declared.

Cypriot banks were heavily exposed to Greek sovereign debt and took substantial losses during the debt write-down which Greece forced upon its creditors as a condition of the nation obtaining its second EU/IMF bailout. As a result, Cyprus needed to find €23 billion in order to safeguard its banking sector, but the EU/IMF were only prepared to lend the nation €10 billion towards this total with the Cypriots having to find the remainder.

At the end of last week’s trading, all of the world’s major markets ended higher. In Europe over the course of the week, the FTSE was up by 1.6%, it closed at 6625.5; the Dax ended at 8278.6, rising by 1.9% over the course of the week; the CAC was up by 1% to end the session at 3953.8.

The German economy is the largest within the Eurozone and the wider European Union and therefore German economic data is closely scrutinised as a portent for the fortunes of the wider EU. Germany has one of the lowest levels of unemployment within the EU (together with Austria) at 6.9% of its workforce, or 2.9 million people idle.

The Dow Jones Industrial index has broken the 15000 point barrier and has reached fresh record highs. Before the Global Financial Crisis struck, the Dow’s record close stood at 14164.5 in October 2007. Whilst yesterday’s close at 15056.2 is a new record and represents good news, it means that the index has climbed by just 892 points over the past 67 months.

Greece has had to ask its Eurozone partners for two bailouts in order to help the nation avoid bankruptcy and an inevitable exit from the single European currency

US unemployment figures for April provided a pleasant surprise for once with new jobs created coming in at a stronger level than analysts had been expecting. See how this will affect the Forex market.

At the end of last week’s trading, the world’s major markets ended higher with the one exception of Japan’s Nikkei.

The US Federal Reserve has said that it will continue with its plans to purchase $85 billion worth of bonds on a monthly basis.