Collinson FX Market Commentary - Nov 18 - Markets surge on bravado

by Collinson FX on 18 Nov 2015 Collinson FX Market Commentary - Nov 18 - Markets surge on Click here to find out how to get Collinson FX's free iPhone app

European markets surged with all the bravado emanating from European leaders, in particular, the French!

The French will go hard on the terrorists, as allies close ranks, supported by old friends in the form of Russia. The Russians are the biggest beneficiary of this new solidarity, as they negotiate the exit from sanctions, in return for support in the fight against Muslim terrorism.

The bounce in equities may be short lived with most economic data remaining soft. The surge in the Dollar has hit commodities and kept associated currencies at bay.

The AUD regained 0.7100, but remains vulnerable, while the KIWI wallowed around 0.6450 after weak inflation data confirmed sluggish growth. The EUR remained weak, trading 1.0640, while the GBP traded around 1.5200. Central Banks remain the dictators of currencies and equities, while Geo-Political events remain the short term risk.

Collinson FX Market Commentary - Nov 17 - Aussie cards fall OK
Nov 17 - The G20 rolled on in Turkey, dominated by the Paris Terror attacks, overwhelming the planned focus of tax, climate and the economy. Russia appears to the focus of high level meetings and compromises are on the horizon.

The lesser of two evils!? Putin has placed himself in the drivers seat and his ability to act, rather than articulate, forces him into any solution. U.S. Equities rallied, as did the Dollar and oil, with traditional safety flows. The EUR slipped below 1.0700, while the GBP trades around 1.5200, as EU CPI remains non-existent reflecting the lack of real economic growth.

Japanese GDP contracted further than expected, living in the negative neighborhood, dampening commodity demand. The AUD slipped below 0.7100, while the NZD has given up the battle with 0.6500, with Services PMI disappointing. Markets are dominated by geopolitical events and monetary policy.

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