Forex Fundamental Analysis

The Dollar tumbled Tuesday falling just south of 74.30 on the DXY. The Kiwi was the big winner advancing 1.38% followed by the Pound at 1.03%. Meanwhile the JPY was the only major to lose ground to the Greenback as an emergency meeting of finance minister in Japan was convened to discuss the JPY's continued strength.

The Bank of Japan has announced that it will inject 10 trillion Yen into the Japanese economy. The move is intended to improve liquidity within the economy and allow businesses to borrow money more easily.

The Japanese stock exchange has been loosing ground compared to the other major indices. The yen is enjoying sustained strength against the other major currencies, yet the country is in a deflationary cycle; has a near zero interest rate policy and high unemployment.

It was a mixed day for the Global Equity Markets on Friday following Dubai's debt default announcement the day before. The markets in Asia continued to sell off while in Europe they apparently felt the exposure was sufficiently contained.

Last week saw most of the major stock exchanges stand still, except for the Nikkei which lost ground significantly. In Europe, the FTSE shed just 0.11% of its value, closing at 5245.7; the CAC was down by 0.21%, closing at 3721.5; the Dax closed up by 0.41% at 5686.6.

The global economic crisis was caused by a lack of confidence in the financial sector about bad loans and risky investments which was typified by the sub-prime debacle.

The once mighty Greenback has dropped to its lowest value against the Japanese currency since July 1995.

Global Equities Market futures are pointing slightly higher for Wednesday's open. The DJIA finished lower after a mixed day on Wall Street, losing 17.24 points to close at 10,433.71.

The US economy did return to growth in Q3, bringing a formal end to the US recession (well, at least for the time being), but the figures were lower than first believed.

Positive economic data released today pushed Global Equity Markets higher once again. In Canada, a better than expected print on Retails Sales moved the CAD higher as well as month over month figures that published at 1%. In addition, last month's print was revised upwards as well.

Gold has always been the refuge to go to in times of economic worries and doubt. Its value has been imprinted deep into the human psyche since antiquity and the metal has intrinsic worth, finding myriad uses from jewellery through to space exploration.

The DJIA was flat Friday closing the day down just 14.28 points. The week saw the DJIA gain 9/10th of a percent while most Global Equity Markets finished the week in negative territory. The Greenback gained as risk was held in check as the DXY closed above 75.57 in the forex market, for the first time since November 12th.

Economic parameters vary with great speed over the course of a trading day. For this reason, it is useful to look at data over a slightly longer term to gain an insight into any trends that might be emerging which can be exploited for your investment strategy.

The Organisation for Economic Co-operation and Development has 30 member states drawn from developed nations and has the mandate to support economic growth, boost employment and contribute to world trade, amongst other things.

In a move which would make the blood of any true free-marketeer run cold, a key US House of Representatives committee has voted to give government the power to order that large banks be split up.