Please select your home edition
Edition
Collinson and Co

Collinson FX Market Commentary- October 23, 2013 - USD crashes

by Collinson FX on 23 Oct 2013
CTECH - San Francisco - 18ft International - Day 3, 11 September 2013 © Richard Gladwell www.richardgladwell.com

Collinson FX market Commentary: October 23, 2013

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

The long awaited, and much delayed, Non-Farm Payrolls came in lower than expected and Unemployment fell to 7.2%.

This is relatively good news and would ordinarily suggest an improvement in economic conditions. This would suggest a tapering of the QE Infinity policy that the Fed have been foisting upon the US and the Globe. The Fed has siezed upon the recent US Government shutdown as an excuse to extend Monetary expansionism, without fail. Bernanke seems intent on expanding the Feds balance sheet beyond all comprehension and without an avenue of return to normalcy. This will certainly continue under the leadership of dovish, democrat... Yellen!

The great leap forward, harks back to Sino/Russian command/control plans for the economy and is working out well for the Obama regime. The rollout of Government controlled Health Care is going swimmingly, and is a huge pin-up poster for more, big Government.

The message has been sent and the Dollar crashing, with the EUR hitting 1.3800 and the GBP to 1.6250! The demise of the USD is a direct result of the Fed's monetary policy and is destroying wealth in the USA.

This is modern economic and monetary socialism in action and because the reserve currency is being undermined other Central Banks must follow, suggesting capital flow in to hard assets.

Commodities will reflect this move and is translated in to the associated currencies with the AUD moving to 0.9700 and the KIWI 0.8515. This is purely a reflection of the dire state of the Dollar and certainly not a symptom of healthy local economic conditions. Currency wars resume!


Collinson FX market Commentary: October 22, 2013

The drama of the last couple of weeks has played out and left the markets exhausted. The only economic data released overnight in the US, was Existing Homes Sales, which declined 1.9% and set off a decline in Home Builders.

The September Jobs Report is due out tonight, after delays due to the Government shutdown. The Government shutdown and the Debt Ceiling crises has empowered the Fed with a further reason to resist the reduction of their boundless expansion of the money supply. The QE Infinity has been a snowball on a steep decline with $85 Billion being added to liquidity every month. It now appears unlikely that Bernanke will attempt to commence the taper, which will result in a dim view of his reign historically.

His successor, Yellen, is a Democratic Dove and will gleefully extend the supply of money thus undermining the Dollar and asset values. This will result in a monetary form of redistribution of wealth..... Central Bank Socialism!

Currencies remained steady with the EUR 1.3680 and the GBP 1.6150 reflecting the weakness in the Dollar. Risk appetite remains strong and has the associated currencies moving towards recent highs, with the AUD trading 0.9650 and the KIWI slipping back to 0.8420. US Monetary policy will continue to undermine the US Dollar thus supporting currencies, assets and equities.


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

Gladwell's Line - Does the America's Cup really need a Star Chamber?
The first meeting of the three-man America's Cup Arbitration Panel is believed to have taken place in London The first meeting of the three-man America's Cup Arbitration Panel is believed to have taken place in London in the past week or so. Officially the date hasn't been publicly announced. The venue hasn't been publicly named, and the parties have appeared before a Panel that is publicly nameless.
Posted on 23 Jul
America's Cup - Glenn Ashby on Emirates Team NZ's road to Bermuda
Part 2 of the interview with Emirates Team NZ skipper Glenn Ashby. In this part of the interview we look at what is going to happen once Emirates Team NZ get their 'AC49.5' sailing in Auckland, and how the campaign may shape up before they leave for Bermuda. Ashby wouldn’t be drawn on whether Team New Zealand had started their AC50 build, with July being the usual start of what is usually a five-month build and commissioning period for an end of December launch.
Posted on 10 Jul
America's Cup - Glenn Ashby on Emirates Team NZ's new AC49.5
Sail-World talks with Emirates Team NZ skipper, Glenn Ashby on what is different about the team's new test boat Just under 11 months out from the 35th America’s Cup, Team New Zealand does not seem to be in its customary place at the front of the starting grid to be the first to launch their Challenger, or are they? Although they will be one of the last of the six teams to launch an AC45 Surrogate, Emirates Team New Zealand may have stolen a march with a boat that is as close as you can get to an AC50.
Posted on 9 Jul
Gladwell's Line - Emirates Team NZ launches shadow AC50
Emirates Team NZ took a late but significant step along the road to the 35th America's Cup, with the launch of their AC4 Emirates Team NZ took a late but significant step along the road to the 35th America's Cup, with the launch of their AC45S - as the test boats are called in the Protocol which governs the 2017 event. The bloated Protocol, which now runs to 83 pages of legalese, is restrictive on the size of boat that can be built as a test platform but doesn't restrict the number that can be built.
Posted on 22 Jun
Platino recovery - Family confirms that tug has made rendezvous
Reports in social media say a salvage tug has made a rendezvous with the Platino earlier than expected. Reports in social media by family and friends of Nick Saull, the crew member killed during a catastrophic incident abroad the 66ft yacht Platino say the salvage tug which left on Tuesday night has made the rendezvous earlier than expected. The Facebook report says the tug, Sea Pelican, arrived on Friday morning, the weather in the area has eased and with a more favorable outlook.
Posted on 16 Jun
Rio 2016 - Double Olympic medallist on the delights of Guanabara Bay
Olympic Gold and Bronze medallist Bruce Kendall updates on the 2016 Olympic venue at Guanabara Bay. Olympic Gold and Bronze medallist, and now a windsurfer coach, Bruce Kendall has made several trips to the 2016 Olympic venue at Guanabara Bay. He updates on the pollution issue which is clearly not going to be resolved in a couple of months, and also shares his views on the venue from a sailing competition perspective.
Posted on 14 Jun
America's Cup - Artemis win Chicago as Team Japan wins two races
Louis Vuitton America's Cup World Series got three races away on Super Sunday. After losing the first official day of racing due to light winds and the non-arrival of the onshore breeze, Louis Vuitton America's Cup World Series got three races away on Super Sunday. From a racing perspective this was probably the best day of racing yet in the series which counts for points in the Qualifying Series of the America's Cup in 11 months time.
Posted on 12 Jun
America's Cup - Emirates TNZ NZ and Oracle capsize in Chicago Practice
Emirates Team New Zealand and Oracle Team USA capsized in Practice Racing at the Louis Vuitton ACWS Chicago There was action aplenty on Practice Day at Louis Vuitton America's Cup World Series Chicago, after Emirates Team New Zealand capsized in their match with Oracle Team USA, and then Oracle Team USA capsized later in the day. Team NZ's skipper skipper Glenn Ashby performed some impressive acrobatics ejecting from the AC45 capsize, without injury.
Posted on 11 Jun
America's Cup - Changes proposed to control future Cup options
Changes are being mooted to put the America's Cup on a longer-term footing according to the Daily Telegraph (UK) News that changes are being mooted to put the America's Cup on a longer-term footing is being floated in the Daily Telegraph (UK) by the British Challenger, Land Rover BAR. According to the Telegraph, some of the teams in the 2017 America's Cup are keen to lock-in parameters which would bind successive holders of the a style and frequency for the next America's Cup Match.
Posted on 8 Jun
America's Cup - AC50 construction uncovered - Part 2 - Wings and Costs
Second part of a two-part series looking at the AC50 construction progress at Core Builders Composites Second part of a two-part series looking at the construction progress at Core Builders Composites, and features of the AC50 class which will be used in the 35th America's Cup in Bermuda. Tim Smyth takes us on a tour of the CBC facility in Warkworth, and hour's drive north of Auckland. Where several AC50's, components and wingsails are under construction or have already been shipped to the teams.
Posted on 5 Jun