Forex Fundamental Analysis

The Euro peaked in 2008 against the US Dollar at slightly less than $1.6, but it has fallen steadily since early 2014 from $1.4 to stand at about $1.06 today

Brexit means Brexit, of course. The UK will become a world leader of free trade deals; all will be sweetness and light, no really… As the old joke has it “The meek will inherit the earth – if the rest of you don’t mind, that is!”

Last week was a positive affair for the world’s major markets with all the major indices either standing still or advancing.

The idea that the UK might become a low tax economy to attract major corporations to Europe’s largest offshore island is repugnant to many British people, but it is perhaps what Theresa May considers as her “hole card” in the game of Brexit poker that she is about to play with the EU.

The Commons voted to allow the British Prime Minister the right to invoke article 50 of the Treaty of Lisbon last night.

The UK Supreme Court determined that Mrs May could not invoke Royal Prerogative as the authority needed to send notification to the EU that the UK intends to withdraw from the EU as outlined in Article 50 of the Lisbon Treaty.

It must be pointed out that employment is a lagging indicator of the economic cycle and, in any case, it is too soon to determine if the embryonic economic policies of President Trump will create or destroy jobs in the US economy.

Last week was another mixed affair for the world’s major markets. The Dow ended the week down by 0.11% to close at 20071. The Nasdaq composite index was up by 0.11% over the course of the week at 5666.8.

In life, one is faced with a myriad of choices which can sometimes seem to be overwhelming, but in the end a single choice emerges.

In its first meeting since Donald Trump became president of the USA, the Federal Reserve has left interest rates unchanged.

There rightly was significant public anger directed towards the banks and their “creative” business practices that led directly to the Global Financial Crisis.

Last week was the final trading period for January from the perspective of these summaries. Markets were again mixed. Get the week in review for January 30, 2017 here.

The UK economy grew at 0.6% in Q4 2016, matching the growth levels seen in Q2 and Q3 and giving an annualised growth figure of 2% for the full year.

The Chinese economy caused a big wobble to the global economy last year with concerns that its major stock market was over-valued, public debt was unsustainable and growth was slowing. It took global markets most of Q1 to recover from the China doubts, but the underlying questions were never satisfactorily resolved.

It will remain one of the enduring mysteries of 2016 as to why Theresa May didn’t directly seek the authority of parliament to invoke Article 50 of the Treaty of Lisbon and start the process of disentangling the UK from the EU.