Forex Fundamental Analysis

The world’s third largest economy looks set to make its target growth of 8% for 2009 according to data from China’s National Bureau of statistics. Year-on-year data for October suggests that industrial activity is up by more than 16%.

The Dollar was relatively unchanged across the board yesterday with the DXY managing to stay afloat above 75 despite testing support just south of 75.

Trading is likely to be somewhat subdued in North America on Wednesday due to partial market observance of Veterans’ Day.

Global Equity Markets rallied hard to open the week. This follows the G-20 meeting of Governors in which there was universal commitment to keep liquidity flowing until a sense of self sustaining economies return.

The group of the world’s 20 largest economies (G20) met in St Andrew’s, Scotland on the 7th November. As widely predicted, the leaders pledged to maintain the various financial support packages that have been put in place to avoid a greater catastrophe to the global economy than we have seen played out over the last two years. The news was welcomed by all the major stock indices which closed approx

So the EUR hit 1.50 again albeit at time of writing unconvincingly so, failing to make a new high by rejecting short-term technical resistance at around 1.5020.

Equity Futures are mostly negative tonight suggesting a slightly lower open. This weekend saw the board of governors from the G-20 assemble.

In general, last week was a good one for the world’s major stock markets with all indices gaining ground over the course of the week, except for the Nikkei.

The Dow Jones closed 2% higher yesterday on the strength of business productivity data. US productivity is determined as the output per hour of work. The rate rose by 9.5% in Q3. Some analysts suggest that this increased productivity was due to the job cuts forced on many companies by the global recession.

Gold does it again setting a new high to 1,097.72. Oil also broke back over $80 a barrel to an intra-day high of $81.06.

The official figures for Q3 gave a projected annualised growth of 3.5% for the world’s largest economy, ending a recession that had lasted for more than a year.

Gold surged ahead again today making new highs after hitting 1,088.50 India's Central Bank bought 200 metric tons of Gold from the IMF.

The American (government!) owned car manufacturing giant, General Motors, has announced that it is pulling out of a move to sell off its European subsidiaries Opel (based in Germany) and Vauxhall (based in the UK).

Aside from an ‘unchanged’ rate decision by the Fed on Wednesday, at this point the other most likely outcome is for a potentially large-range on low-volume trading session as bets are removed prior to the statement and then replaced by new ones.

The ripples of the sub-prime crisis spread rapidly around the world from their epicentre in the USA, thanks to the globalisation of the major financial institutions.