Collinson FX Market Commentary - Oct 5 - Brexit pressures on UK
by Collinson FX on 5 Oct 2017
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Market Commentary - Oct 5 - Brexit pressures on UK
Oct 5 - The Dow continued to surge in to record territory, fuelled by low interest rates, deregulation and the prospect of massive tax cuts. Confidence has been building, along with economic prospects, globally. The Dollar has also found some recent support, with the EUR slipping to 1.1740, while the Yen trades up to 113.00.
The GBP has underperformed, due to 'Brexit' pressures, back to 1.3240 after lower construction data. The RBA left rates unchanged, at 1.5%, a 14 month trend with no near-term prospect of a change. This initially hit the vulnerable AUD, falling below 0.7800, but recovered in overnight trade. The KIWI has been the underachiever, on the global stage, undermined by the doubt created by the political situation.
The NZD fell back below 0.7150, uncertainty dominating the local market, while the Dairy Auction sales were also weak. The political situation must be addressed to right this ship. That would require some adult negotiations, working towards a sensible outcome, taking ego out of the situation.
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Market Commentary - Oct 4 - NZ ship needs to be righted
Oct 4 - The Dow continued to surge into record territory, fuelled by low-interest rates, deregulation and the prospect of massive tax cuts. Confidence has been building, along with economic prospects, globally. The Dollar has also found some recent support, with the EUR slipping to 1.1740, while the Yen trades up to 113.00. The GBP has underperformed, due to 'Brexit' pressures, back to 1.3240 after lower construction data.
The RBA left rates unchanged, at 1.5%, a 14-month trend with no near-term prospect of a change. This initially hit the vulnerable AUD, falling below 0.7800, but recovered in overnight trade. The KIWI has been the underachiever, on the global stage, undermined by the doubt created by the political situation.
The NZD fell back below 0.7150, uncertainty dominating the local market, while the Dairy Auction sales were also weak. The political situation must be addressed to right this ship. That would require some adult negotiations, working towards a sensible outcome, taking ego out of the situation.
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Market Commentary - Oct 3 - Markets shocked by shooting
US Markets were overwhelmed by the mass shooting in Las Vegas, which killed 58 and wounded hundreds, shocking markets. This is likely the work of a deranged man, rather than the plight of recent Islamic attacks, revealing evil is not confined to religious zealots.
Equity markets were surging to record levels to begin another quarter of the 'Trump effect'. The massive rally in confidence is underwritten by executive actions but requires urgent legislative tax reform. The ISM Manufacturing number came in better than expected, outperforming the PMI data from Europe, which was reflected in the Dollar.
The EUR fell back to 1.1740, while the GBP broke lower, hitting 1.3280. Splits in the 'Tory Brexit' schedule undermines confidence, as Boris Johnson advocates a hard line exit, contradicting other senior conservatives. The Japanese Tankan report was extremely bullish, citing strong Employment, confidence and Capital investment. This sets the stage for a strong electoral performance from PM Abe.
The AUD drifted to 0.7820, while the NZD tested 0.7200, on the downside. Post election negotiations are yet to commence and inaction does not provide confidence, undermining markets.
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