Please select your home edition
Edition
Collinson and Co

Collinson FX Market Commentary- October 17, 2013 - Markets soar

by Collinson FX on 17 Oct 2013
- 18ft International - Day 3, 11 September 2013 Richard Gladwell www.photosport.co.nz

Collinson FX market Commentary: October 17, 2013

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

Equity markets surged as a deal has been done in the US Congress. Republicans caved and the US Government will open until next January and the Debt Ceiling has been extended until February, 2014. The deal is an overwhelming win for the Democrats who now get to carry on spending at record levels destroying the budget and the Dollar.

The Political fall-out will be even greater, with the likely collapse of Republican credibility/support and could see the fall of the House Speaker. A return to 'normal' will now mean a focus on the economy and expectations should not be high. The suspension of the US Government has resulted in a lack of official data which will now resume.

The flood of data will swamp markets and analysts will digest this and will be reflected in the markets.

Currencies have remained steady throughout these dramatic political times with the EUR trading 1.3530 and the GBP 1.5950. Commodities surged and the AUD recovered lost ground to trade 0.9530 with the KIWI breaking back above 0.8400. Equities will breathe a sigh of relief until economic realities hit home.



Collinson FX market Commentary: October 16, 2013

The stalemate continues in this deadly game of chess the two political parties continue to participate in. The House put forward a plan which was vehemently rejected by the Senate leader, Reid.

He continues to work with Republican members of the Senate for a short term debt extension and a temporary re-opening of the Government. Democrats sense a capitulation and a going in for the kill with the Republicans taking the heat in the Polls.

A face saving exit would all the would need but the Democrats intend to destroy the enemy. Trapped their is little choice but capitulation would be political suicide. Markets remain calm with equities giving up the previous days gains and currencies remaining steady.

The EUR traded 1.3515 and the GBP 1.5980 with no official US official data.

The AUD surged above 0.9500 yesterday after positive news from the US and held overnight despite the uncertainty. The NZD has also booked gains with attractive alternative investment prospects for investors disappointed in the USD.

The KIWI traded above 0.8350 but could be vulnerable with a failure in US negotiations. Still all about Washington!



Collinson FX market Commentary: October 15, 2013

Expectations are rising in Washington, that a deal to avoid the debt default, is likely to be done. The Senate leaders have been negotiating, as have a bi-partisan group of Senators, which is likely to result in some sort of solution which will be sent to the Republican House.

All Congressional leaders are scheduled to meet with Obama and Biden at the white house to address the situation. Biden is a known negotiator and may have an influence on his intransigent boss. The prospect of a deal turned equity markets positive after early losses.

There is no major data releases in the US as it is Columbus Day holiday and the Government remains closed for business.

The EUR rose back to 1.3560 and the GBP approached the significant 1.6000 level. Commodities also recovered, boosting associated currencies, with the AUD rising to 0.9460 and the KIWI surging back towards 0.8350. Focus remains Washington.

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.

Collinson and Co

Related Articles

Collinson FX Market Commentary - Aug 4 - Brexit bites
Weakness in commodity currencies continued, with the AUD drifting to 0.7440, while the NZD held 0.7430 The Bank of England Governor warned of threats to the UK economy, citing Brexit and the impact this may have on the economy.US Factory Orders continued to post gains, as did Durable Goods Orders, but this was qualified by a contraction in the ISM Non Manufacturing data.
Posted on 5 Aug
Collinson FX Market Commentary - Aug 3 - Apple has a blowout
The AUD floundered around 0.7960, while the NZD drifted back towards 0.7400, looking for direction. Apple exceeded all expectations on earnings and this pushed the Dow to a close above 22,000! The tech company beat on earnings on both above and below the line revenue. This enabled the DOW to push to yet another milestone. The Dollar continued to fade, with the EUR rebounding to 1.1850, while the GBP hit 1.3250.
Posted on 3 Aug
Collinson FX Market Commentary - Aug 2 - USD rebounds
The NZD was also hit by the rebounding Dollar, falling back towards 0.7450, The Dow surged through 22,000, making every post a winner, supported by market optimism and earnings. Equity markets have been soaring, with abounding confidence, since the election of President Trump. De-regulation is well underway, while the promise of tax reform has been a fundamental, thus essential to support the bull market.
Posted on 2 Aug
Collinson FX Market Commentary - July 30 - AUD rises higher
The reserve weakness has directly impacted the commodity currencies, with the AUD pushing towards 0.8000, Oil prices continued to post gains, pushing up to $48.50, as a direct result of the Russian led OPEC/Non-OPEC meeting. US Housing data continued to improve and this leading sector may lead the economy but tax reform is sorely needed. The flagging reserve allowed commodity currencies to continue to gain ground, with the AUD breaking above 0.7950, while the NZD pushed above 0.7450.
Posted on 31 Jul
Collinson FX Market Commentary - July 27 - Oil up after meeting
AUD breaking above 0.7950, while the NZD pushed above 0.7450. Oil prices continued to post gains, pushing up to $48.50, as a direct result of the Russian led OPEC/Non-OPEC meeting. US Housing data continued to improve and this leading sector may lead the economy but tax reform is sorely needed. The flagging reserve allowed commodity currencies to continue to gain ground, with the AUD breaking above 0.7950, while the NZD pushed above 0.7450.
Posted on 27 Jul
Collinson FX Market Commentary - July 25 - Oil production limited
The AUD has settled around 0.7900, with huge gains being digested, while the NZD spiked to 0.7450 OPEC and Non-OPEC Oil producers are meeting, with Russia taking a leading role, in an effort to limit production to reduce stocks. Oil has shown limited upside, in the last week, but remains fundamentally challenged. The oil price is the life blood of Russia and OPEC but demand and oversupply have limited any upside.
Posted on 25 Jul
Collinson FX Market Commentary - July 20 - Oil price slips up
The AUD has been surging strongly, trading around 0.7950, while the NZD has attempted to consolidate around 0.7350. Oil has quietly worked its way back to $47/barrel, in line with gains posted by other commodity prices, directly translating into stronger currencies. The AUD has been surging strongly, trading around 0.7950, while the NZD has attempted to consolidate around 0.7350. Eyes are firmly on the ECB and there actions. Expectations are for no rate change but for hawkish commentary from Draghi.
Posted on 20 Jul
Collinson FX Market Commentary - July 19 - US Rally hits wall
AUD rallying above 0.7900, while the NZD looks to 0.7350 The US Dollar continued to flounder, ahead of the ECB meeting, Thursday. The EUR rallied strongly, to 1.1550, with expectations of an end to the extreme monetary policy currently in place. The GBP did not react, holding around 1.3050, tempered by lower than expected inflation data.
Posted on 19 Jul
Collinson FX Market Commentary - July 18 - China has positive data
The AUD drifted below 0.7800, while the NZD held above 0.7300, awaiting important CPI data released today. Chinese economic performance translates directly into demand driven support for commodity prices. This allowed the currencies to consolidate after spiking at the close of last week. The AUD drifted below 0.7800, while the NZD held above 0.7300, awaiting important CPI data released today. The GBP traded 1.3050, while the EUR pushed towards 1.1500, ahead of the ECB meeting Thursday.
Posted on 18 Jul
Collinson FX Market Commentary - July 15-16 - US Dollar hit hard
The AUD jumped to 0.7820, while the NZD consolidated above 0.7300, echoing the global move against the Dollar. The AUD jumped to 0.7820, while the NZD consolidated above 0.7300, echoing the global move against the Dollar. The coming week will provide plenty of cannon fodder in the form of global economic data releases and Central Bank activity. The ECB will be a major influence, in the coming week, while RBA minutes and Employment data will drive local currency moves.
Posted on 17 Jul