Forex Fundamental Analysis

It is a demonstrable scientific fact that the climate of planet earth changes. Geological, fossil and isotopic records prove that climate has oscillated from tropical periods to ice ages.

Russia, the world’s largest nation, has seen its economy shift up and down and sideways, remaining staunchly viable for some time and then falling bitterly. Often the movement is in reaction to outside pressures while at other times it can be attributed to internal causes.

The US Federal Reserve has held interest rates at near zero levels since December 2008 and the interest rate has not been raised for nine years now.

Last week marked the final trading session for September for the purposes of these summaries.

From a consumer’s perspective, inflation is always a bad thing. Customer’s like to see prices remain flat or even fall, but from the perspective of a central banker, falling prices over the longer term, deflation, is bad news.

The stronger they are, the harder they fall. How quickly Volkswagen has gone from being one of the most top rated car manufacturers in the world to the central player in the auto industry’s latest scandal.

Based in Manilla in the Philippines, the Asian Development Bank (ADB) is an inter-governmental organisation and was established in 1966.

A central plank of the Liberal Democrat-Conservative coalition government which ruled between 2010 and earlier this year was a promise to rein-in public expenditure

A general election was held in Greece at the weekend which saw the ruling Syriza party (a coalition of the left) emerge as the largest group with 145 seats in the 300 seat parliament.

When investors are frustrated and confused about where the markets are heading, they do what comes naturally—they buy bonds.

Last week saw all of the world’s major markets slipping, with the exception of the Nasaq. The markets fell as a result of the Federal Reserve’s decision to leave interest rates unchanged and continuing disquiet over the slowing Chinese economy, however, there are signs that this has now been “priced-in”.

Many analysts had expected that process to be gradual and to commence yesterday at the conclusion of the Federal Reserve’s two-day September meeting, but the decision taken was that interest rates would remain on hold for a while longer.

Though the announcement of the Federal Reserve on Thursday to keep interest rates near zero wasn’t surprising for many analysts, the markets didn’t seem to know how to respond.

It’s been months and investors are tired of asking the same old question: Will the Fed raise interest rates or will it hold off for another time? The consensus seems to be that the Fed can hold back no longer and the hike will definitely happen.

Inflation is a measure of how much prices for a defined set of goods or services have increased over a period of time. If, during the same period, wages do not increase by the same margin then the purchasing power of those involved falls.