Collinson FX Market Commentary - Nov 5 - All predictions contradicted

by Collinson FX on 5 Nov 2015 Collinson FX Market Commentary - Nov 5 - All predictions Click here to find out how to get Collinson FX's free iPhone app

Nov 5 - Equities slipped overnight with the appearance of Fed Chairman, Yellen, in front of lawmakers. Her testimony confirmed, that the telegraphed interest rate rise for December, is 'live'! This is confirmation of previous statements and looks to contradict all predictions.

The flood of liquidity will be hardly altered and a rise in interest rates may be more symbolic than anything. It still would present a change in policy and surprise many! The Dollar rallied strongly on the news, with the EUR crashing to 1.0850, while the GBP dropped to 1.5350, deity some stronger than expected Services PMI.

Commodity currencies were equally impacted, with the AUD slipping to 0.7125, while the NZD fell to 0.6560. The stronger Dollar has filtered through to commodities and currencies, while the expected rate rise may find an excuse to re-assess!? Non Farm Payrolls will probably be in line with expectations, looking at the ADP Jobs Report, so may not impact currency moves

Collinson FX Market Commentary - Nov 4 - RBA baulks on rate increase

Nov 4 - Equities continued to book gains for November boosted by a dearth of detrimental economic data being released. U.S. Factory Orders contracted 1%, but this did little to dent investor enthusiasm, with equities jumping.

The signals from the Fed, that they will raise rates in December, has lead to a rally in Bond yields and thus the Dollar. The EUR slipped back to 1.0965, while the GBP was steady on 1.5420, awaiting a major speech from ECB President Draghi. The RBA left rates unchanged citing improving global economic conditions and lower commodity prices washing through the local economy boosting trade and prospects.

Many had expected an interest rate cut, thus the decision, prompted a rally in the AUD towards 0.7200. The NZD went the opposite direction, falling below 0.6700 on the back of a 7.4% drop in the GDT (Global Dairy Trade) index overnight. Look for local Employment data to impact the KIWI at the margins today, while the AUD could be impacted by today's trade data.

Collinson FX Market Commentary - Nov 3 - NZD sleeps after big win

Nov 3 -Equity markets booked some gains to commence a huge week of global economic data releases. China kicked the week off, with the important Manufacturing PMI remaining below the important 50% expansionary mark, reaffirming the slowing in growth.

European PMI was steady, allowing some gains in equity markets, pushing the EUR to 1.1030 and the GBP to 1.5420. Australian Manufacturing PMI dipped, but Building Approvals continued to march on, up over 21% for the year!

The AUD booked gains, pushing up to 0.7125, while the NZD slept after a big weekend. The KIWI traded 0.6830, but the local World Champions did not mind!

For more on Collinson FX and market information see:
www.collinsonfx.com and www.collinsonwealthmanagement.com

Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |

Disclaimer: The details expressed in this website and accompanying documents or transmissions are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Collinson Forex Ltd accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site.