Collinson FX Market Commentary - May 28 - Confused Greek tragedy
by Collinson FX on 28 May 2015
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Collinson FX market Commentary: May 28, 2015 - Confused Greek Click here to find out how to get CollinsonFX's free iPhone app
May 28 - European markets rallied, with growing confidence of a deal, in the Greek debt crises. The Greeks announced a deal was 'imminent' although this was refuted by the EC. Confusion reigns supreme, as is the norm, with the Greek tragedy.
Emergency funds are being made available to the Greek Government with compromise likely to avoid a Greek withdrawal from the EC. The Dollar remained firm, with the EUR trading 1.0880, while the GBP slipped to 1.5330, as the Bank of England adopt a Fed type strategy on interest rate decisions.
US markets shared the European confidence and regained some of the losses suffered in equities the previous day. The rhetoric from the Fed has boosted the Dollar and this has been reflected in the commodity currencies.
The NZD traded 0.7215, while the AUD tried to consolidate above 0.7700, boosted by some improving data regarding their Leading Index. Greek negotiations continue to effect European markets, while Geo-Political issues remain a threat, although economic data will drive daily market moves.
Collinson FX market Commentary: May 27, 2015 -
May 27 - Equity markets crashed, in the USA, when they opened after the long Memorial Day weekend. Yellen assured markets that interest rates would rise this year if global economic conditions warranted it.
Economic conditions have been, at best, mixed. Equities thrive on the mega-liquidity global Central Banks have been more than happy to flush markets with and any threat to the cash disrupts the record breaking equity markets. US House Prices continued to rise, but at a moderate pace, while durable goods contracted.
The bullish sentiment from the Fed boosted the Dollar, with the EURO falling to 1.0870, while the GBP dropped to 1.5380. Commodity currencies were equally impacted, with the AUD now testing 0.7700, while the KIWI finally broke below 0.7300 and trades in the low 0.72's.
The Fed continues to drive currency movement but the bullish language will be contradicted as the implications of interest rate rises become clear!
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