Forex Investment and Currency Trading

After struggling under the weight of the intense global economic recession and financial crisis, the Canadian economy appears to be well and truly on its way to recovery – albeit one initially driven by the significant monetary and fiscal stimulus added to the system. In July, market expects the Canadian economy to post its second monthly GDP gain in a year with a respectable 0.4% M/M advance, following the 0.1% M.M gain the month before. The key factor driving economic activity higher in July should be strong manufacturing sector production, which boasted its biggest monthly performance (in real terms) in [...]

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The communiqué published by world leaders at the conclusion of the G20 summit in Pittsburgh offered few surprises. Of interest, the communiqué referred to the G20 as the “premier forum for our international economic cooperation”. This effectively represents an acknowledgement that this expanded group of countries (representing 90% of global GDP and two-thirds of the world’s population) will be the key forum to discuss economic issues in the future.
Reflecting this shift, world leaders pledged to re-allocate at least five percent of the quota representation of the IMF to emerging and developing economies by January 2011. Reassuringly, world leaders also pledged [...]

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Up until 1973, currencies were fixed in value against the US Dollar, according to the system introduced on July 22, 1944 by the United Nations Monetary and Financial Conference in the resort of Bretton Woods in New Hampshire. This agreement became known as the “Bretton Woods” system. The Bretton Woods conference was at the same time the founding venue for the International Monetary Fund, a supranational entity. The IMF was a multilateral decision-making body with limited authority. There was a surprisingly large consensus among the 44 allied nations (plus neutral Argentina) participating in the conference. Everybody wanted to devise a [...]

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Today’s Statement, following the Fed’s meeting was very much as expected. It noted the pick up in economic activity but warned of constraints, particularly in the household sector and reiterated that economic activity is likely to remain weak for a time. As expected it retained the phrase that the Funds rate will stay low for an extended period and also repeated that inflation will remain subdued. The four factors constraining households listed after the last meeting – ongoing job losses, sluggish income growth, lower housing wealth and tight credit – were all retained, though the Fed did acknowledge that activity [...]

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