Forex Year End Checkup

FOREX YEAR END CHECKUP The end of the year is an opportune time to compare key economic indicators and assess how the major economies fared over the past 12 months. As the global economy contin- ues to face serious challenges, this information may also give some insight into trends carrying over into the New Year. Medical History: The U.S. Economy improved in Economic Indicators United States of America the second half of the year. U.S. Dollar Unemployment Despite a U.S. credit rating downgrade, the European crisis has reinstated strong demand Q1 Q2 93 04 for U.S. dollars. D Prognosis: Interest Rate "Negative spillovers from the furmail in European markets 0.25% could be greater than expec- ted and have the potential to 01 02 03 04 derail the recovery in activ- GDP vs Retail Sales ity and renew fears among financially fragile households and businesses." AA+ 01 02 03 04 - OECD SEP Credit Rating Economic Indicators Medical History: European Union Despite all efforts to date, the eurozone debt crisis appears to Euro Unemployment be spreading to the larger European economies. The risk of a widespread default is greater 01 03 04 02 than ever. Interest Rate Prognosis: "Let us not hide it, Europe may be swept away by the crisis if it doesn't get a grip, if it doesn't change. 25% 01 02 03 04 GDP vs Retail Sales - French President, Nicolas Sarkozy Germany AAA Portugal BBB- Greece CC 01 92 03 04 S&P Credit Rating Economic Indicators Medical History: United Kingdom Already struggling with a mas- sive deficit, Britain's economy British Pound Unemployment is at further risk if the eurozone debt crisis spreads to other European nations. 02 Q1 03 04 Prognosis: Interest Rate "In the UK, we must try to bolster the resilience of our 0.5% financial system to better withstand the storms that may 01 02 03 04 come in our direction и А GDP vs Retail Sales - Bank of England Govemor Mervyn King AAA 01 02 03 04 S&P Credit Rating Economic Indicators Medical History: Japan Having survived an earthquake and ensuing tsunami in 2011, Japanese Yen Unemployment J Japan is now facing other economic threats. A rapidy ***** appreciating yen and diminished industrial output are making its 01 02 03 04 exports less competitive on Interest Rate global markets. 0.05% Prognosis: 01 02 03 04 "Japan's economy will likely be in a severe state for the time being, especially with respect to exports." GDP vs Retail Sales AA- - Bank of Japan Govemor Masaaki Shirakawa 03 04 01 02 SEP Credit Rating Medical History: Economic Indicators Canada Canada maintained its reputa- tion this year as one of the Canadian Dollar Unemployment better-managed economies. But weaker U.S. growth coupled with the situation in Europe A 01 02 03 04 means predictions for growth D have been revised downwards Interest Rate for 2012. Prognosis: The Bank of Canada will keep Q1 02 03 04 "considerable monetary stimulus in place, "in part because of a European debt crisis that "appears barely contained." - Bank of Canada Governor, Mark Carney GDP vs Retail Sales AAA 01 02 03 04 S&P Credit Rating Medical History: Economic Indicators Australia Australia's crucial export sector has suffered from reduced Australian Dollar Unemployment A Chinese demand. The central bank cut its interest rate several times and may be forced to cut 01 02 03 04 further, under pressure from the sidelines. Interest Rate 4.25% Prognosis: "There is already an impact in terms of global growth. Global growth is slowing, that impacts Lpon growth in Australia, that has a subsequent impact parti- Q1 02 03 04 GDP vs Retail Sales AAA cularly on budget revenues. - Australian Treasurer, Wayne Swan 01 02 03 04 S&P Crodit Rating NOANDA OANDA is an online provider of foreign exchange trading and currency information services. O 1996 - 2011 OANDA Corporation. All rights reaerved. Data Sources: Econostats for all econcmic data and official interviews and news releases for all goverrment official quotes. Currency graphs are based on the perfommance of the country's national currency against a basket of major currencies.