Collinson FX Market Commentary- Feb 11 - Greeks won't discard bail-out

by Collinson FX on 12 Feb 2015 Collinson FX market Commentary: February 11, 2015

http://itunes.apple.com/app/collinsonfx/id533360650?mt=8!Click_here to find out how to get CollinsonFX's free iPhone app

Feb 11 - Equity markets settled overnight with talk of a compromise on the Greek debt negotiations. The Greek Government announced that is would not discard the bailout package and look to honour 70% of the austerity demands. Rumours swirled of a compromise proposal from the EC and this was enough for Greek equities to rally 8%, while Bonds yields subsided, from worrying levels. Conversely, the G20 Finance Ministers meeting, produced the opposite and contradictory response. German Finance Minister, Schaeuble, said 'it's over' and if Greeks wanted their final tranche there would be no negotiations. Confidence spread to US equities which rallied on the news from Greece, while the Dollar held 1.1320 and the GBP pushed 1.5220, boosted by stronger Industrial and Manufacturing production. Commodity currencies were steady, after Chinese CPI/PPI drifted lower, reflecting the contraction in Chinese growth. The KIWI was trading around the 0.7400 mark, while the AUD drifted to 0.7770, impaired by the political turmoil. Greece will continue to dominate the markets.

Collinson FX market Commentary: February 10, 2015
Feb 10 - The Greek Tsipras Government has announced the reversal of austerity measures agreed to allow the EC/IMF bailout. They have decided to re-employ state workers, raise the minimum wage, reduce taxes and halt privatization. This will be paid for by halting the servicing of the bailout debt.

The only problem that remains is that the creditors, including the ECB and Banks, are not going to allow the default on debt obligations. This has been reflected in the Bond yields, which are rising to dangerously high levels, and starting to impact fellow heavily indebted EU nations. This has spread to nervous equity markets and European bourses started to reverse gains booked from recent ECB QE.

US equities were impacted despite a boost from energy companies as oil slowly claws back to US$53. Chinese trade was weaker than expected, with a contraction in Exports of 3.3%, while Imports collapsed by nearly 20%. This hit the commodity currencies in local trade, but energy price rises overnight managed to boost the associated currencies.

The NZD moved back above 0.7400, while the AUD tested 0.7800, despite the political turmoil in Canberra.
The NZD currently trades 0.6535 and 0.4860 against the EUR and GBP, with the NZDJPY booking further gains to trade just below 88.00.

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.