Forex Fundamental Analysis

With the Euro hovering above a four year low against the Dollar, it is probably appropriate to turn to the country that triggered the slide in the first place: Greece.

Last week was a turbulent one for the major stock markets on the back of continuing uncertainty on the Eurozone crisis despite a major initiative, but all markets were up on the previous week’s level.

The biggest purchase that most people ever make in their lives is a home of their own.

The Spanish deficit is running at 11% of the nation’s GDP.

The UK held an indecisive election last Thursday with no one party gaining the 326 seats needed to have an absolute majority in parliament.

The substantial losses seen last week on stock exchanges around the world have largely been reversed following the release of details of an EU plan to prevent “contagion” from the Greek debt

Last week saw a substantial setback for the major stock markets on the back of continuing uncertainty on the Eurozone crisis and the inconclusive UK election.

The credit rating agency, Moody’s has warned of potential fallout from the Greek debt crisis to foreign banks within the European Union; even if they are not in the Eurozone.

The Euro zone debt crisis is intensifying by the week and while the euro had been relatively resilient until last week, the recent price action has been clearly bearish.

It should come as a surprise to nobody that follows the financial markets and the foreign exchanges that the Eurozone/IMF bail-out measures for Greece have been given the approval of Germany and agreed, in principal, by Eurozone finance ministers.

With all eyes on the Greek drama, it is easy to forget that other key decisions are being taken elsewhere which will have an impact of the recovery, such as it is, around the world.

As the Greece debacle unfolds, the EU and the IMF have agreed to provide Athens with a “bailout” package valued at 110 billion Euros (80 by EU and EUR 30 by IMF).

Figures released by the Spanish national statistics agency (INE) reveal that the unemployment rate in Spain has hit 20%.

Friday marked the last trading session in April. The week was a poor one for the major stock markets with the best performance coming from Japan, the only market to post a gain.

Market sentiment in Europe was a touch more bullish yesterday, with all of the markets making some headway after the sharp falls earlier in the week.