Collinson FX Market Commentary - Sep 23 - Banks flood markets

by Collinson FX on 23 Sep 2015 Collinson FX Market Commentary - Sep 23 - Banks flood Click here to find out how to get Collinson FX's free iPhone app

Sep 23 - Global markets resumed the sell-off across commodities and equities. Chinese demand is contracting forcing commodities lower and impacting Europe and the US. The Feds lack of action has created asset bubbles across many asset classes.

Equities have been the major beneficiary of QE and are now correcting. Commodities experienced a huge demand boost to prices with a surging Chinese economy and an erosion in the reserve. The Fed are afraid to raise rates due to the weakness in the Global economies and the impact of rising capital costs. The Dollar continued the recent rally, pushing the EUR back to 1.1125, while the GBP fell to 1.5370.

Commodity currencies remain under extreme pressure, as demand pushes prices lower, accentuated by a rising reserve. The AUD pushed below 0.7100, despite surging Consumer Confidence and rising House Prices, while the NZD slipped under 0.6300. Central Banks, globally, have flooded markets with liquidity creating asset bubbles. These bubbles have a tendency to burst, rather than correct, creating extreme volatility and uncertainty.

Collinson FX Market Commentary - Sep 22 - A quiet start to week

Sep 22 - There were little in the way of economic revelations globally to commence the new week. Markets are still adjusting to the lack of action from the Fed, with QE full steam ahead, equities headed to their natural North. The Feds QE program has corrupted bond and equity markets and currencies have fought a battle to the bottom. The Dollar rebounded across the board, with the EUR slipping to below 1.1300, while the GBP dipped below 1.5500. Commodity currencies were under pressure with the rebounding Dollar pushing the AUD down to 0.7125, while the NZD broke below 0.6400. The Dollar may be experiencing a dead cat bounce, fuelled by promised future rate rises, but pipe dreams are free!

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