Forex Fundamental Analysis

All of the world’s major stock markets closed higher, compared to how they stood last week. In Europe over the course of the week, the FTSE put on 4.4%, closing at 5428.2; the Dax rose by 3.1%, ending the week at 6134.6; the CAC put on 4.7% to end the session at 3672.2.

The European Central Bank (ECB) has adopted a more bullish stance over its projections for growth within the Eurozone.

A report issued by the Bank for International Settlement determined that approximately $4 trillion Dollars are traded on the world’s foreign exchanges every day. This means that the financial equivalent of the world’s economic output churns through the system every two weeks.

A short overview of the Forex major pairs in today's Forex market.

Eurostat have just released the unemployment data for nations using the single European currency, the Euro. The data show that the overall level of unemployment across the Eurozone has remained unchanged at 10% for the fifth straight month.

The Yen has continued to appreciate against the other major currencies despite the clear wishes of the Japanese government and the Bank of Japan. The currency is near a fifteen year high against the US Dollar and is trading at the highest level it has seen against the Euro for nine years.

Friday marked the last day’s trading in August and also the first anniversary of these articles. All of the markets ended the month lower than they were when it started. On the currency markets, the Dollar was mixed over the course of the last month against the other major currencies.

Recently, we reported that President Obama had declared the housing glut in the USA to be impeding the recovery in America. Statistics have just emerged about the current status of the sale of newly constructed housing stock and existing homes that suggest that the market is even more sluggish than analysts had feared.

Ratings agency Standard and Poor’s (S&P) has downgraded the credit worthiness of Irish debt vehicles from AA to AA-; the nation’s lowest rating since 1995.

The US Dollar hit fresh 15 year lows against the Japanese Yen in trading yesterday. It also showed gains against the Euro; pushing it to a nine year low, and Sterling.

The EU has confirmed that Greece has met (and exceeded) its targets and that the next tranche of funding will be released next month. Greek state spending has been cut by 16.9% over the levels seen in the first half of 2009 and the deficit has declined by some 46% - a faster rate than anticipated.

With the exception of the Nasdaq, all of the world’s major stock markets closed lower, compared to how they stood last week. On the currency markets last week the Euro again had the worst of trading.

America is the world’s largest economy. The saying goes that “if America sneezes, the world catches a cold”. Certainly, economic events in the USA do have repercussions around the globe.

The recovery, such as it is, has led to increased demand for housing which has become more affordable and stimulus measures were put in place to stimulate both house sales and construction, the sector is now being blamed by President Obama for being a drag on the recovery.

European economic growth reports shows that Germany produced growth figures of 2.2% for the period from April to June; a record for the post re-unification period.