by Collinson FX
Greek marinas suffering
Collinson FX market Commentary: 28 May 2012
Markets closed the week a little shell shocked after more turmoil in Europe.
The Debt/Deficit crises spread to Spain with one of the largest Banks (Bankia) requesting a $23 Billion Government Bailout.
S&P added to the mess by downgrading further Spanish Banks. This crises may well spread across other European Banks with runs likely.
Plans are now afoot to ring-fence the spread of contagion and prepare for the exit of the Greeks. The precedent would then be set and it will be who stays and who goes.
The single currency dipped below 1.2500 looking extremely vulnerable with Greek elections not due until June 17th.
The instability has shattered market confidence and now economic data is starting to reflect this. The commodity currencies stabilised just above lows with the KIWI 0.7520 and the AUD 0.9750.
The new week will focus on Europe and the Banks and a close look at US economic reports. Housing and Employment will be key. The start will be slow with US markets closed for the Memorial Day long Weekend.
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.