Dismal Unemployment Figures

Lately global economic news has been unpleasant to say the least. Every day there are news reports of more job losses in the US and Europe and retail sales are at an all time low. Despite the denial from politicians it is clear that the world is entering a recession.

Germany in Recession

Germany is officially in a recession and China’s industry output growth is the lowest in seven years. The Organization for Economic Cooperation and Development has predicted a recession for the Eurozone, Japan, and the US. The worst economic crisis since the great depression is taking its toll and limiting growth and forex opportunities.

Economists Predict Deepening Recession

Economists are forecasting a grim future for the global economy. Carsten Brzeski of ING Financial Markets stated, “The headwinds of the financial crisis and the global economic slowdown are blowing right in the face of the German economy. Even more worrying, the full impact of the financial crisis still has to unfold. If you think today’s numbers are already bad, just wait for the next quarter.” Investors are facing grim market conditions and Forex opportunities could be severely limited.

Massive Job Losses in the US and UK

Because of the economic crisis workers worldwide face massive layoffs and permanent job losses. The US has lost approximately 250,000 jobs so far this year and there are daily reports of more job losses across the country. In the UK British telecoms company BT Group BT. said it was cutting 10,000 jobs at home and overseas.

Obama Suggests Stimulus Plan For US

The Organization for Economic Cooperation and Development has suggested that it was time for more governments to provide an extra boost to their economies in the form of fiscal stimulus in the form of tax cuts or increased government spending. President elect Barack Obama has suggested another stimulus plan and is also proposing a bailout for the ailing US auto industry. Germany is expected to give its economy a 50 billion Euro boost.

$4.6 Trillion Worldwide For Bailouts

Governments around the world have already pledged around $4.6 trillion for bank bailouts, credit guarantees and fiscal spending to mitigate the damage from the financial turmoil. Most experts agree that recession like conditions will be with us well into 2009. At present the US dollar is performing amazingly well on currency markets and is still providing investors with a safe haven and Forex opportunities but is unclear just how long this will last.

G 20 Summit Could Provide Forex Opportunity

This weekend leaders from around the world will meet in Washington at what has been billed as an economic summit. Despite the differences between nations it is hoped that a spirit of cooperation will prevail and that the world can begin to recover from this crisis. In the mean time investors can still take advantage of Forex opportunities not found in other markets.

Quick Forex Tip: There are many factors that affect currency exchange rates and those who want to trade forex markets should be familiar with them. Economic factors are probably the most important in determining the value of a currency. Political conditions can also affect exchange rates. Those who want to trade forex markets would be well advised to keep abreast of current political and economic events. Thanks to the internet, those with the right knowledge and an internet connection can join this exciting market and take advantage of the lucrative opportunities it can provide for investors.