Forex Fundamental Analysis

Greece has plunged the Eurozone into a crisis which is sending shock waves around the world due to the inter-connectivity of the business world. The Greek sovereign debt crisis has been triggered by a debt of €310 billion – Italy, the next performer to take to the stage in Europe, has debts in excess of €1 trillion.

Friday was the end of the month as far as these summaries are concerned. November has been dominated by political uncertainty and on-going concerns about the sovereign debt crisis in Europe. All of the markets ended the week lower.

Perpetually falling prices sounds like a consumer’s dream, but in economic terms, deflation is a bad thing.

In one of the most ominous signs we have seen so far out of Europe, the Germans only managed to attract buyers for a little more than half of the 6 billion Euros’ worth of their 10-year bunds on Wednesday. The Germans are seen as a backstop to the entire issue coming out of Europe.

Germany has been at the heart of provision of funding to bailout peripheral economies which have got into sovereign debt problems since the onset of the global financial crisis – despite what the papers may say, this is neither charity nor altruism.

Early estimates put the growth of the American economy in the quarter between June and September at 2.5%. However, as real figures have come in, this estimate has had to be trimmed back, revealing that the world’s largest economy grew by 2% in Q3.

With the current issues in the European bond markets, it is easy to think the Euro should be melting down. Is it? Find out why EUR/USD isn't as easy to trade as always.

Hungary joined the European Union in 2004, just 15 years after leaving the communist block and emerging from behind the Iron Curtain. Whilst the nation is an EU member, it did not join the Eurozone and has retained its own currency, the Hungarian Florint.

Technocrat leaders have been installed in Greece and Italy and the Spanish government fell at the weekend. The significant economic problems facing Spain are now the concern of the Popular Party (conservative).

Silvio Berlusconi has resigned as Italian Prime Minister after getting an austerity budget through parliament.

With the recent European debt issues, there has undoubtedly been a run to the US dollar from time to time as doubts continue to linger about the possibility of a viable solution to the problems.

Just days after figures were released, showing that Japan had emerged from a nine month recession; the Bank of Japan has sounded a note of caution about the nation’s growth prospects.

While you weren’t looking, the British Pound has been under assault. The falling Pound has been masked by the crisis in the EU, and all of the drama surrounding it.

If the crew of the Starship Enterprise was to beam down and look at the global economy right now with their Tricorders and other gizmos, they’d conclude that it was alive and still in a growth phase, if only barely.

Political uncertainty was the watchword for last week in Europe, sending markets and the Euro lower. By the end of the trading week, Greece had a new PM and Italy was well on the way to getting one.