Forex Fundamental Analysis

Given that the economic cycle of expansion followed by recession and recovery with a return to growth sees employment rise once recovery has kicked in, the fact the unemployment in the Eurozone has hit a fresh record level tends to suggest that recovery from the last recessionary period is not yet, truly, underway.

It is perhaps an unpleasant fact, but if any political party in power anywhere had a clue how to restore growth, employment and drive-down public debt and deficit, it would have done so by now.

Data is beginning to emerge on how major economies have fared in the first three months of 2013. The United Kingdom economy managed to post growth of 0.3% according to the Office for National Statistics (ONS).

Friday marked the final trading session for the month from the perspective of these summaries. At the end of last week’s trading, all of the world’s major markets ended higher.

South Korea has the 13th largest economy in the world and is the third largest Asian economy behind China and Japan. Figures just released show that the economy has achieved its fastest rate of expansion for two years in Q1 2013.

The global economy continues to be sluggish with demand weak in many regions. The Eurozone is no exception to this general malaise. Evidence for this has come in the shape of the latest Markit Purchasing Manager’s Index (PMI) reading.

China is Japan’s largest single trading partner, so any cooling in Sino-Japanese relations has the potential to have a significant impact on Japan’s economy.

The head of the IMF, Christine Lagarde, has suggested that projected UK growth figures are “not particularly good”. She declined to be drawn into a debate about whether or not the UK ought to review its austerity policy.

At the end of last week’s trading, all of the world’s major markets ended lower. Get the details here for last week's currency and commodity trading information from a fundamental perspective.

The world’s third largest economy, Japan, has published a fresh record trade deficit for the year ended 31st March 2013. A trade deficit simply means that the value of a nation’s imports outweighs its exports, leaving a negative trade balance.

The economies of Brazil, Russia, India, China and South Africa are regarded as “emerging” economies and are set to take seats at the top table of global economic power shortly; indeed, China has already overtaken Japan to become the world’s second largest economy.

The world’s second largest economy produces growth figures that would be the envy of any other economy, but the growth seen in the first 3 months of 2013 has come in below most analysts’ predictions.

When market rates for borrowing on sovereign debt markets became excessive for Ireland and Portugal, in turn, both nations were forced to turn to fellow members of the Eurozone and the IMF in order to secure bailout funding.

At the end of last week’s trading, all of the world’s major markets ended higher. Get the fundamental analysis for the Forex week in review here.

Cyprus contributes just 0.2% to the economic output of the Eurozone, so the trials and tribulations that the island nation is experiencing should be viewed in the context of the bigger picture.