Collinson FX Market Commentary - June 14 - US markets re-bound

by Collinson FX on 14 Jun 2017 Collinson FX Market Commentary - June 14 - Market absorbs election

US equity markets rebounded strongly, as the FOMC began its two day meeting, expected to result in a rate rise. The question will be the associated plan to reduce the size of the over-inflated balance sheet.

There will also be a commentary on the American economy and the strategic plan to combat rising inflation and improving economic conditions. The important German ZEW Economic Sentiment report came in stronger than expected, as did the associated EU ZEW, reflecting recent improved economic conditions.

The EUR was steady around 1.1200, while the GBP rebounded to 1.2750, with stronger inflation and housing data. Political conditions remain tense, although a Conservative government will be formed, but the leadership may be fluid!?

The AUD traded 0.7530, while the NZD regained 0.7200, ahead of local trade numbers set to be released.

Collinson FX Market Commentary - June 12 - Market absorbs election

Markets were calm after major events passed without the sky falling in. The UK election was a surprise and resulted in the a hung Parliament, although May has formed an alliance with Northern Ireland Unionists to form a majority, thereby avoiding total disaster.

The GBP fell more than two big figures, as the election unravelled for the Conservatives, but slowly recovered as markets digested the repercussions. A Government will be formed but leadership 'may' change in the near future!?

In the US, attention was focused on the former Director of the FBI, Comey. He testified in front of Congress and there were no major surprises or revelations.

The coming week will be highlighted by the meeting of the FOMC and the Bank of England. Add to that Inflation, Employment and Retail Sales and we have plenty of potential market movers.

Collinson FX Market Commentary - June 8 - All eyes on Brits

Markets await key triggers overnight, with the UK elections and the ECB rate decision. The UK election has the potential to become the greatest market mover. The polls have been tightening, as the election draws near, although the recent past would advise ignorance.

The Tories should win easily, apart from gains in high diversity populous areas, allowing the currency to resume the recent recovery. The ECB will review interest rates and are expected to leave interest rates unchanged. The accompanying commentary should reflect the economic recovery, although Bundesbank pressure may impact associated commentary, thereby testing future QE?

The EUR traded 1.1250, while the GBP pushed up to 1.2950, reflecting the status quo. The world record for continuous growth in GDP was set by the Australian economy, growing 0.3%, in line with expectations. The news was a boon for the currency, which jumped to trade around 0.7550, while the KIWI resisted 0.7200. All eyes remain on the UK election.

Collinson FX Market Commentary - June 6 - NZD tries 72c

Markets were steady overnight with the Dollar and equities drifting. The ECB rate decision is expected to continue QE but may signal a change in attitude. The associated commentary may indicate the Central Bank may begin to recognise stronger economic conditions and accede to the Bundesbank's demands.

The UK election on Thursday has heated up the tin roof for the cat, with polls unexpectedly tightening, after what was expected to be a landslide victory for the Conservatives. An election climate dominated by terror and immigration, has taken the focus off the economy, while Brexit looms large. The Tories should win, with Labour only likely to perform well in high diversity areas, such as London.

The GBP traded around 1.2900, while the EUR hit 1.1270, preparing for volatility. The Yen has been a major beneficiary of safety plays, moving to 109.40, free of major controversy. The RBA left the rates unchanged, as expected, allowing the AUD to push through 0.7500. The NZD tested 0.7200, continuing the march upwards, supported by higher commodity prices and a positive Dairy click here and here Or for the latest update click here

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