Forex Fundamental Analysis

With China and Japan dominating the news out of Asia, S. Korea seems to be left behind when it comes to blaring headlines or major economic events. But there is always something happening in the world’s 13th-largest economy and despite continuous threats from its northern neighbor, S. Korea seems to be moving ahead in many ways.

“Made in China” is a common sign seen today on thousands of products bought and sold in the U.S. and around the world. But there was a time years ago when China, as a communist state, was considered persona non grata and was eliminated as a viable country with which to do business.

China has just devalued its currency, the Yuan, by almost 4% in two successive surprising one-day moves. This included the Yuan’s biggest one-day drop in over twenty years. The Chinese government was able to achieve this as it maintains enough control to effectively peg the value of the currency within a band.

Gold prices ended the month of July down roughly 6.7% at approximately $1095 an ounce. The precious metal, which failed to pick up throughout the Grexit crisis, has been falling out of favor for some time now and the fluctuations in the price of gold have resulted in an increase in the amount of gold futures trading.

Last week saw the American major markets slip whilst the rest of the pack gained ground. Get the analysis for the week of August 10, 2015 here.

Oil prices are plummeting out of control and fears have been voiced that this oil crisis will be deeper than the one we experienced back in the 1980’s. With a glut of oil stored in the Middle East, how can it be that there will be a shortage of the black stuff at the gas tanks?

After seeing downside pressure for several months, the Australian dollar rallied on August 4, upon release of a less dovish than expected rate statement. The RBA view the current state of employment growth, economic activity and inflation as satisfactory enough to keep rates on hold.

This is the question that is dominating fundamental analysis of today’s Forex market, and has been for quite a while. The reason is that the U.S. Dollar is the largest currency by both total volume and by trading volume, and as such it is usually the key driver of directional moves in the Forex market.

Last week saw the final trading session for July; a month when Greece went to the very edge of leaving the Euro before turning back.

With the headlines focused on the financial events taking place in Greece and China, not much attention has been given to the situation in Venezuela.

When we talk about the euro, we usually don’t consider the United Kingdom as a dominant presence in the discussion. After all, despite being a member of the Eurozone group, London has opted to keep the Pound Sterling as her local currency.

Last week saw all of the major markets close lower. Get the fundamental weekly analysis for the currency and commodity pairs for the week of July 27, 2015 here.

Prior to the fall of the outgoing government, the IMF and the Eurozone were on the cusp of disbursing the final tranche of €7.7 billion under the second bailout.

The RBNZ made their second interest rate cut for 2015 on July 23, decreasing the official cash rate to 3%.

The Obama administration reestablished diplomatic relations with Cuba in December 2014. Less than a month later, it put new rules into place for easing travel and trade restrictions with the island’s Communist government.