Collinson FX Market Commentary - Feb 22 - US Dollar resumes rally
by Collinson FX on 22 Feb 2017
- Millennium Cup and Bay of Islands Sailing Week, January 2017 Steve Western
www.kingfishercharters.co.nz
Collinson FX Market Commentary - Feb 22 - US Dollar resumes rally
Feb 22 - PMI data from Europe was mixed, with Germany improving, while France is in decline. Overall the EU has been static and the under-weighted EURO has only added to the booming exports of Germany, while lesser states from the Med, have suffered.
The EURO is currency 'manipulation in sheep clothes', allowing Germany to prosper, while others pay the price. Without fiscal/political consolidation, the single currency is debased, thus providing avenues for manipulation. The election season is upon France and Holland and may well provide the peoples answer.
The Dollar resumed the Trump rally, with the EUR falling to 1.0550, while the Yen traded 113.50. Commodities have fared well, although the rising reserve has kept the AUD below 0.7700, while the NZD has drifted back to 0.7150. NZ Dairy Prices were weak and assisted the NZRB's dialogue, in terms of currency, although the story remains the US Dollar.
Collinson FX Market Commentary - Feb 21 - Pence steadies Europe
US Vice President Pence has been reassuring the Europeans of their support for NATO and the EU, but firmly warned the Europeans over their own commitment to defence, dispelling some uncertainties.
NATO members must commit to 2% of GDP on defence, which has been paid lip service in the past, by most members. The US is in a strong position and European political turmoil has only exposed sensitivities. Strong poll showings in France and Holland have exposed growing support for Non-EU, right wing parties, which is spreading fear amongst the European elites.
News overnight of raids on LePen's (French Nationalist Party) offices have opened a new front in the battle.
US equities settled in a quiet open to a holiday weekend. The Dollar was also steady, with the EUR trading 1.0600, while the Yen held above 113.00. The AUD remained below 0.7700, while the NZD drifted below 0.7200, looking for support from the Dairy Auction.
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