Investopedia's Forex Outlook For April 2012
AAA
  1. Investopedia Forex Outlook For April 2012 - Macro Highlights
  2. Investopedia Forex Outlook For April 2012 - U.S. And Europe
  3. Investopedia Forex Outlook For April 2012 - Asia, U.K. And Switzerland
  4. Investopedia Forex Outlook For April 2012 - Calendar of Events to Watch
Investopedia Forex Outlook For April 2012 - Macro Highlights

Investopedia Forex Outlook For April 2012 - Macro Highlights

The market has become cautiously optimistic in March, with bullish U.S. employment figures and a Greek debt deal improving the situation in Europe. Meanwhile, the MSCI global shares index is up around 10% since the beginning of the year and remains more than 20% off of its lows reached during the fourth quarter of last year. SEE: Forex Outlook For March 2012

Still, there are many risks that threaten to derail the global economic recovery, including continued turmoil in Greece, higher oil prices due to the situation in Iran, and any signs of a more severe slowdown in China. The global economy is expected to be slower this year than it was in 2011, amid less-than-spectacular emerging markets and troubles in Europe.

Macroeconomic Highlights

  • U.S. Recovery Picks Up Steam – February was the third consecutive month of U.S. job growth over 200,000. Retail sales and consumer spending were also on the rise that month. But signs of trouble started emerging in March data, where consumer confidence fell unexpectedly as higher gasoline prices put pressure on consumers. (For related reading, see Consumer Spending As A Market Indicator.)
  • Europe Shows Signs of Hope – The situation in the European Union (E.U.) was temporarily defused after Greece reached a restructuring agreement with bond holders that opened the doors to more bailout funds. But economists remain skeptical that the country can reach its austerity targets, given failures in the past, while additional bailout funds are likely to be required, and other countries remain in danger.
  • Signs of Strength in Japan – Japan's economy showed signs of strength this month, after reporting a disappointing fourth quarter gross domestic product (GDP) last month. The bullish signals led the Bank of Japan (BOJ) to avoid any additional stimulus measures for the time being, but interest rates are to be kept at near zero. The move has helped the Japanese yen recover some ground after a spectacular fall.
  • Britain Faces Headwinds – Britain's economy continues to struggle with a so-called "productivity puzzle," in that its workers are failing to become more efficient during the downturn, unlike the U.S. and other countries. But Britain's austerity efforts led to a large surplus last quarter, boosting hopes that it would opt for more economic stimulus packages that could jumpstart its economy. (For related reading, see Austerity: When The Government Tightens Its Belt.)
  • Switzerland Recovers Alongside Europe – The Swiss economy has shown signs of recovery amid improvements in the Eurozone. Traders had been using the currency as a safe-haven investment throughout the Eurozone crisis. While the Swiss franc remains overvalued, according to the government, the Swiss National Bank (SNB) is expected to leave interest rates near zero and maintain its current monetary policy.
Investopedia Forex Outlook For April 2012 - U.S. And Europe

  1. Investopedia Forex Outlook For April 2012 - Macro Highlights
  2. Investopedia Forex Outlook For April 2012 - U.S. And Europe
  3. Investopedia Forex Outlook For April 2012 - Asia, U.K. And Switzerland
  4. Investopedia Forex Outlook For April 2012 - Calendar of Events to Watch
Investopedia Forex Outlook For April 2012 - Macro Highlights
RELATED TERMS
  1. Forex Spread Betting

    A category of spread betting that involves taking a bet on the ...
  2. Marginal Propensity to Save

    The proportion of an aggregate raise in pay that a consumer spends ...
  3. Outcome Bias

    A decision based on the outcome of previous events without regard ...
  4. Predictive Analytics

    The use of statistics and modeling to determine future performance ...
  5. NY Empire State Index

    A seasonally adjusted index that tracks the results of the Empire ...
  6. Guerrilla Trading

    A very short-term trading technique that aims to generate small ...
  1. Is the Bureau of Labor Statistics accurate?

    Read this brief analysis of the accuracy of Bureau of Labor Statistics, including a summary of the types of reports issued ...
  2. What's the difference between housing starts and building permits?

    Both housing starts and building permits are economic indicators used to assess the health of the housing market, but their ...
  3. How does margin trading in the forex market work?

    When an investor uses a margin account, he or she is essentially borrowing to increase the possible return on investment. ...
  4. What are the rules for placing stop and limit orders in forex?

    The high amounts of leverage commonly found in the forex market can offer investors the potential to make big gains, but ...
comments powered by Disqus
Related Tutorials
  1. Investopedia Forex Outlook For February 2013
    Forex Education

    Investopedia Forex Outlook For February 2013

  2. Investopedia's Forex Outlook For January 2013
    Forex Fundamentals

    Investopedia's Forex Outlook For January 2013

  3. Investopedia's Forex Outlook For December 2012
    Forex Fundamentals

    Investopedia's Forex Outlook For December 2012

  4. Investopedia's Forex Outlook For November 2012
    Forex Fundamentals

    Investopedia's Forex Outlook For November 2012

  5. Investopedia's Forex Outlook For October 2012
    Forex Fundamentals

    Investopedia's Forex Outlook For October 2012

Trading Center