Forex Fundamental Analysis

With everyone focused on the Eurozone, the Swiss franc and the Greek elections, it is easy to lose sight of other news taking place around the world. And there is always plenty of activity to report.

In March 2014, the US Dollar would buy you 35 Russian Roubles, at close of play yesterday, the same Dollar would buy you nearly 68.4 Roubles meaning that the value of the Rouble has nearly halved in just ten months.

With most of the votes counted in yesterday’s Greek elections, the Syriza party with leftist leader Alexis Tsipras looks like a sure win.

Last week was dominated by anticipation of the ECB’s announcement concerning QE.

The Federal Reserve could be key for Wall Street this week as investors hear from the U.S. central bank for the first time since a series of moves by its global peers, including the European Central Bank's stimulus plan.

As widely expected, the European Central Bank announced that it will start a Quantitative Easing (QE) programme to purchase bonds that will run until September 2016, at the earliest, and start this March.

With all that is happening in the banking industry these days and with predictions that the ECB will use a heavy dose of quantitative easing to help stimulate the Euro zone economy, many investors are wondering what QE is all about and whether it will help them in the long run.

In a week which will see a key ECB meeting (22nd January) in which it is widely expected that a raft of Eurozone Quantitative Easing measures will be announced, a closely watched economic barometer suggests that German investor confidence has picked up further.

Since deciding to flirt with capitalism, the Communist Chinese economy has enjoyed spectacular growth albeit from an originally low base.

The International Monetary Fund (IMF) has lowered its forecast for global economic growth for this year and next, reducing this year’s number from the previous estimate made last October of 3.7% to a slightly lower 3.5%; the growth forecast for 2016 now stands at 3.7%.

The market is widely expecting the European Central Bank (ECB) to announce a program of Quantitative Easing (QE) this Thursday during their Press Conference scheduled to begin at 1:30pm London time.

Cast your mind back to the start of 2011. The Euro would buy CHF 1.48; 1.29 $; 0.76 £. The Euro came under severe pressure during the European sovereign debt crisis that year and by August; it was approaching parity against the Swiss Franc.

Last week was dominated by the shock decision of the Swiss National Bank to end its Euro peg; a move that saw the currency soar against all the majors and generate turmoil on world markets.

It’s no secret that Switzerland has long held itself separate from its peers both in Europe and abroad, both politically and economically. But the Swiss National Bank’s (SNB) decision to unpeg the franc from the euro last week took the world by surprise.

Switzerland has just become a much more expensive place to visit. The Swiss National Bank (SNB) has abandoned its peg to the Euro which saw the Swiss Franc closely anchored to €1.2.