Collinson FX Market Commentary - Sep 22 - US economic confidence up

by Collinson FX on 22 Sep 2017 Market Commentary - Sep 22 - US economic confidence up

Sept 22- Markets continued to digest the FOMC meeting, which was in line with expectations, promoting a return to normal monetary policy. This raised bond yields and promoted the Dollar. The ' Central Bank' impact continues to dominate long term markets. The EUR drifted back towards 1.1900, while the Yen moved to 112.50, reflecting the resurgent Dollar. US economic data continued to reflect economic confidence.

Leading Indicators rose 0.4%, while the Philly Fed Survey reflected strong growth, allowing hawkish sentiment to blossom. The AUD was hit hard, retracing to 0.7925, while the NZD tests 0.7300. The NZ election dominates local markets, with the advance of the left and change, scaring markets. Will NZ shake markets with a massive upset? J is no T.

Market Commentary - Sep 21 - Latest Poll rallies Kiwi

Sep21 -The Fed have a game plan to reduce the massively bloated balance sheet and are looking to raise rates in December. Inflation is returning to a normal state, edging up towards 2%, which invites the Fed to a return to normal monetary policy. The Dollar rallied, with the EUR dipping below 1.2000, while the Yen traded above 111.50. The GBP continued to outperform, but the rally was tempered by the resurgent reserve to 1.3500, while local Retail Sales jumped 2.8%!

The latest poll for Saturday's NZ election saw the incumbents surge, status quo sparking a rally in the NZD, which broke above 0.7350 but drifted towards 0.7300 after the Feds announcement. NZ GDP data,out today, may be political important and impact the currency. The AUD rally was also contained by the Fed, slipping back towards 0.8000, as normalised monetary policy was contingent on economy conditions.

Market Commentary - Sep 20 - Volatile Kiwi jumps

President Trump addressed the UN General Assembly, with great aplomb, allaying Geo-Political fears. The two day FOMC meeting began and yields rose, despite no expectation of a rate rise, although QE may be addressed. The Fed is likely to advocate a contraction of QE and signal a pending rate rise.

The Dollar drifted, with the EUR pushing towards 1.2000, while the stellar GBP trades around 1.3500. US Housing data was mixed, with Building Permits improving, while housing starts contracted. German and EU ZEW Sentiment reports both signalled growing confidence.

The AUD looks to consolidate above 0.8000, while the volatile NZD jumped to 0.7300. The KIWI is hostage to the pending election and hit by fuel shortages in Auckland.

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Market Commentary - Sep 19 - Banks tighten the screws

The new term is 'Quantative Tightening' and is the new phrase du jour. The Bank of England has Indicated a move to tighten monetary policy, while the FOMC meeting will likely prescribe a move in that direction, thus applying pressure to rates.

The GBP has been the beneficiary, although retracing from 1.3500, while the EUR trades 1.1950. The AUD awaits the local Consumer Confidence data, as does the KIWI, while the NZ Election remained front and centre.

The AUD drifts, to around 0.7950, while the NZD holds 0.7250. The election will dominate local trade.

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