Forex Fundamental Analysis

The Eurozone is continuing to experience weak growth, low inflation and high unemployment.

European markets turned positive on opening Thursday as investors await the latest rate decision – and possibly more stimulus – from the European Central Bank (ECB).

The dominant term in the UK economy is the British service sector, so news of how it is faring and sentiment within the service industry is keenly followed as a portent to the behaviour of the wider economy.

Prior to the Global Financial Crisis, the economy of Brazil was set to become a dominant player on the world stage as a member of the BRICs group of emerging economies, but in recent years, it has not fared well.

It’s a big day for China. The International Monetary Fund just welcomed China's yuan into its benchmark currency basket, a major victory for Beijing's campaign for recognition as a global economic power.

From next October, the Yuan will join the Euro, the Yen, the Dollar and Sterling as an IMF reserve currency.

Last week was a largely positive affair for the world’s major markets with most of them gaining ground over last week’s close. Get the Forex week in review fundamental analysis for November 30, 2015 here.

Russian Prime Minister Dmitry Medvedev announced last week that he would introduce a set of economic sanctions on Turkey in response to its "act of aggression" in shooting down a Russian Su-24 bomber in Syria.

Climate changes; if it didn’t, the world would never have emerged from the last Ice Age. However, even the staunchest eco warrior or merchant of global doom would have to accept that this has happened without any anthropogenic component.

You could be forgiven for thinking that a government ought to know precisely where it stands when it comes to projected revenues and expenditures.

While one financial crisis after another seems to be plaguing world markets, one Asian nation seems to be handling it all with a minimum of stress.

It is clearly only a question of time until the Federal Reserve increases interest rates from their current, historically low, level.

As we explained recently, one reason that central banks want to see low, positive levels of inflation is that it would facilitate the normalisation of interest rates which, perversely, are the big weapon in a central bank’s armoury against high inflation.

Last week was a positive affair for the world’s major markets with all of them gaining ground over last week’s close. Get the Forex week in review fundamental analysis for November 23, 2105 here.

It would be fair to say that there has been a breakdown in trust between Greece and its major creditors within the EU and (to a lesser extent) the IMF stemming from the election of Syriza in January and its antics in discussions designed to help Greece square the circle between popular demands and economic reality.