Forex Fundamental Analysis

All the world’s major stock markets closed higher, compared to how they stood last week.

The International Monetary Fund (IMF) has adopted a more bullish stance about the prospects for growth of the global economy in 2010.

Tuesday saw a wave of buying in European markets that put 2.5% on the value of the stock markets as investors looked to find bargains.

According to the British Chambers of Commerce (BCC), the UK economy is set to post weak growth when Q2 figures are released.

Figures just released in the USA have shown that a further 125 000 people have lost their jobs during the month of June. The news has contributed to the recent mood of pessimism that has been gripping international markets recently.

we have struggled to come to terms with the market buying USD seemingly on blind faith recently as the economy continued to flirt with the twin threats of a double-dip and wage deflation. This situation looks about to reverse.

Another turbulent week that saw further volatility in the markets, the usual worries about sovereign debt and European banks borrowing requirements has come to an end.

All of the major stock exchanges lost ground yesterday; by as much as 3%. The latest bout of investor nervousness has been attributed to poor manufacturing output in Europe, China and the US.

The markets are patiently waiting for the upcoming Non-Farm Payroll figures to be released. NFP generally sets the mood for trading in either risk appetite or risk aversion direction.

The figure for renewed borrowing (with a three month term to maturity) was €131.9 billion, lower than the €200 billion that some analysts had predicted. The news pushed European stocks a little higher and the Euro strengthened by one cent against the pound Sterling.

Yesterday saw sharp falls on global stock exchanges as doubts and worries about ability of European banks to repay loans that are due shortly and on-going doubts about the strength of the global recovery.

Why are pessimists think that there is a double dip recession is in the making?

The Bank of England is concerned about risks to UK banking from the on-going Euro/sovereign debt crisis.

markets’ attention is now firmly focused on this week’s Non-farm Payrolls, unsurprisingly given recent developments in the US where jobless benefits have been slashed for those out of work for longer than six months.

Friday marked the last full week in June and the end (for me anyway) of the second quarter of 2010 for these reviews. So it’s time to look back at June and also see how things have changed over the quarter.