The European Economic Crisis
It all started half a decade ago when global recession set in. Since then Europe has been struggling with severe economic conditions in most major Euro zone countries. The governments have been able to do little to recover from the situation and as a result the discontent among people is running high. It is not clear when the European countries will be able to come out of the crisis, but, with matters deteriorating the idea of getting out of the crisis seems to be farfetched. The hardest hit countries are Greece, Spain and Italy and none of them are showing signs of recovery.
The situation in Greece is getting more and more volatile as the government wants to place strict measures in place to meet the demands of the lenders. There is also an uncertainty regarding Spain’s request of a bailout and the Italian government has not yet arrived at any firm decision regarding the economic policies that may show a way out.
The Asian Markets
Though most of the Asian countries have managed to maintain a safe distance from the term economic crisis in its original sense but they have been feeling the heat of the crisis for quite some time now. Due to globalization trade and commerce is now an international affair and a certain incident in one part of the world has cumulative effects on others. So the Asian stock markets are also not in a very good state. All the major markets in Asia including India, China and Japan are exhibiting more falls than futures and this is certainly adding more complication to the already complicate situation.
The American Markets
Dollar has always been a safe haven for forex traders. But due to the tumultuous situation in American markets dollars are also going through stress. With US consumers turning attention away from the market there is hardly any flow of money into the market and that is creating more burdens on the tough financial situation. Moreover, there is also a fear of If the government fails to handle the situation deftly US may face another recession by the start of 2013. Though recent reports show that the US economy is recovering slowly but that is much less tha what is actually needed at the moment.
The forex traders are perhaps the ones who are in the toughest situations. It is very hard to arrive at any distinct conclusion regarding the existing market condition and this is giving birth to speculations which are making the forex business even tougher.