Forex Fundamental Analysis

Fears that Greece and Ireland might default on their debts forced the yield that they need to offer to attract investors to take up their bond issues up to record highs.

Despite clear evidence around the world that the recession following on from the global financial crisis has come to an end and the global economy is enjoying weak growth, the unemployment situation has not eased.

Japan may have been relegated to the world’s third largest economy, but it remains a vital component of the global economy. An influential survey which is sponsored by the Bank of Japan, the tankan survey, has revealed that confidence amongst businesses has fallen for the first time in almost two years.

China is widely regarded as the powerhouse of the global economic recovery. By some accounts, it has already eclipsed Japan to become the world’s second largest economy behind that of the USA.

It was another good week for the world’s major stock exchanges last week with all of them closing higher. In Europe over the course of the week, the FTSE made 1.2%, closing at 5813.0; the Dax made 0.84%, ending the week at 7006.2; the CAC gained 2.9% to end the session at 3857.4.

The Monetary Policy Committee (MPC) of the Bank of England has voted to keep interest rates at their historic low level of 0.5%. This is the 21st month where the rates have been kept on hold, so the move came as no surprise to analysts.

Most analysts were surprised when Japan’s Q3 GDP figure came in at 3.9% since poorer performance had been predicted due to the influence of the high Yen which is perceived as harmful to exports.

The US President has conceded to Republicans over his objection to extend tax breaks brought in by the Bush administration for a further 24 months in order to get agreement over a range of tax benefits for middle class Americans including a child tax credit, college tuition credits and a payroll tax holiday.

With confidence gradually creeping back to the Euro after the extension of the EU-IMF safety net to Ireland and the ECB making it clear that it will continue to buy bonds from Eurozone states, today sees a crucial vote in the Irish parliament.

It was a good week for the world’s major stock exchanges last week with all of them closing higher. In Europe over the course of the week, the FTSE made 1.4%, closing at 5745.3; the Dax alsom made 1.4%, ending the week at 6947.7; the CAC recovered by 0.59% to end the session at 3750.6.

The European Central Bank (ECB) has held interest rates unchanged at 1%. The rate has remained unchanged for 19 consecutive months now.

A Presidential panel comprising democrats, republicans and business people, amongst others, set up to advise on how best to trim the enormous budget deficit has deep spending cuts and increased taxes.

Japan is a nation which relies on its exports to the rest of the world for its economic prosperity.

An aid package was agreed between the Irish government and the European Union over the weekend which would see the Republic granted €85 billion.

It was another mixed week for the world’s major stock exchanges last week. In Europe over the course of the week, the FTSE shed 1.1%, closing at 5668.7; the Dax was essentially unchanged, ending the week at 6849; the CAC suffered the biggest fall of the week, down by 3.4% to end the session at 3728.7.