Investopedia's Forex Outlook For May 2012
AAA
  1. Investopedia's Forex Outlook For May 2012: Macroeconomic Highlights
  2. Investopedia's Forex Outlook For May 2012: U.S. Economy
  3. Investopedia's Forex Outlook For May 2012: European Economy
  4. Investopedia's Forex Outlook For May 2012: Japanese and British Economies
  5. Investopedia's Forex Outlook For May 2012: Swiss Economy
  6. Investopedia's Forex Outlook For May 2012: Calendar of Events

Investopedia's Forex Outlook For May 2012: Macroeconomic Highlights

The global economy continues to recover slowly, as the U.S. recovery picked up steam and the Eurozone crisis stabilized. Despite these promising signs, the recovery has been slow and several risk factors remain for the global economy. Spain's problems have led to renewed concerns about the Eurozone's recovery, while Britain and Japan could face some headwinds. Macroeconomic Highlights

  • United States - The U.S. continues to expand at a modest pace, driven by an improving private domestic sector. In particular, the automotive sector, residential construction and capital spending have been on the rise. Warm weather has helped moderate energy spending this winter, but higher gasoline prices could put a drag on consumer spending over the coming months.
  • Europe - Fears over a eurozone collapse have largely faded, but fundamental problems persist for many European economies. The single eurozone monetary policy may be proving too stimulating for Germany and too restrictive for peripheral countries. These problems are compounded by "austerity fatigue" in weaker countries and "support fatigue" in stronger countries that's further dividing the eurozone.
  • Japan - Japan's economy continues to recover thanks in large part to increased demand for autos in the United States and moderating declines in Europe. Meanwhile, the possibility for additional monetary easing from the Bank of Japan (BOJ) could help nudge inflation closer to its target and further boost growth over the coming months. The government expects the economy to expand 1.9% for the fiscal year.
  • Britain - Britain's economy remains on a slow growth trajectory, with expected 1.6% annual GDP growth expected through 2015. With the government's new commitments to austerity measures, the country's AAA credit rating remains largely intact, but any slowdown worldwide could add pressure to its economic recovery.
  • Switzerland - Switzerland's economy has proven very resilient throughout the eurozone crisis, but its currency's peg to the euro is now being challenged. Ongoing problems in the eurozone have driven traders to test the Swiss National Bank's (SNB) resolve to limit the franc's strength against the euro. Any failure to limit that strength could result in further damage to exports and a weakening of its economy.
SEE: How To Place A Trade With FXCM Markets Investopedia's Forex Outlook For May 2012: U.S. Economy

  1. Investopedia's Forex Outlook For May 2012: Macroeconomic Highlights
  2. Investopedia's Forex Outlook For May 2012: U.S. Economy
  3. Investopedia's Forex Outlook For May 2012: European Economy
  4. Investopedia's Forex Outlook For May 2012: Japanese and British Economies
  5. Investopedia's Forex Outlook For May 2012: Swiss Economy
  6. Investopedia's Forex Outlook For May 2012: Calendar of Events
RELATED TERMS
  1. Marginal Propensity to Save

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

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

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

    A seasonally adjusted index that tracks the results of the Empire ...
  5. Asian Century

    The dominant role that could be played by Asia in the 21st century, ...
  6. Flash Services PMI

    An early estimate of the Services Purchasing Managers' Index ...
RELATED FAQS
  1. How can I use a regression to see the correlation between prices and interest rates?

    In statistics, regression analysis is a widely used technique to uncover relationships among variables and determine whether ... Read Full Answer >>
  2. What are some of the limitations of run rates?

    Some limitations of a reliance on run rates include the occurrence of one-time sales, limitations on contracts, seasonality, ... Read Full Answer >>
  3. What are some real-life examples of the 80-20 rule (Pareto Principle) in practice?

    There are a number of practical applications for the 80-20 rule in diverse areas such as the distribution of wealth in economics, ... Read Full Answer >>
  4. How do I calculate production costs in Excel?

    It is impossible for a single method of calculating production costs to work for all businesses, much less for a Microsoft ... Read Full Answer >>
  5. Which pro forma financial statements should always be included in a business plan?

    When deciding which pro forma financial statements should be included in a business plan, it is important to always include ... Read Full Answer >>
  6. Can the Efficient Market Hypothesis explain economic bubbles?

    The efficient market hypothesis (EMH) cannot explain economic bubbles because, strictly speaking, the EMH would argue that ... Read Full Answer >>

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!