The Forex Robot team is happy to announce continued positive economic activity being reported in the United States. According to the data gathered, the unemployment rate has dropped to 8.6%. This has alleviated some fear among economists and financial analysts about the possibility of a double dip recession in the United States. Additionally, recent measures taken by the Federal Reserve, European Central Bank and China will enable financial institutions to lend money more easily to qualified individuals and companies looking to expand or purchase assets. We're curious to see if the Federal Reserve will consider taking steps to hinder inflationary pressures as a result of this unexpected positive news in unemployment figures. If so, interest rates will rise and the USD will appreciate against the Euro.
Despite the positive economic indicators, Forex Robot analysts believe that there continues to be much risk for the global economy. The Europeans must still figure out how to deal with the messy debt issues for countries like Greece, Italy and Ireland. Even with increased liquidity measures designed to assist lending institutions, a small negative event could have serious global repercussions.
The Forex Robot team is also keeping a close eye on Egyptian election results. According to preliminary reports, the Muslim Brotherhood is expected to have a majority in parliamentary seats. The world's initial response to the most nonviolent elections was positive. The Egyptian stock market rose and the Egyptian Pound rose against other currencies. However, political scientists and world leaders are waiting anxiously to see how the organized Muslim Brotherhood movement will uphold Egypt's current peace treaty with Israel and whether the country will adopt more hard-line Islamist values. 10% of the country is Coptic Christian, who are already beginning to feel more persecuted by growing Islamist trends. Additionally, the small country of Israel is watching events unfold in the region as well. It has enjoyed relative stability with Egypt under Mubarak and hopes to preserve this atmosphere of peace.