Collinson FX Market Commentary- September 26, 2012 - Treading water
by Collinson FX on 26 Sep 2012
Collinson FX market Commentary: September 26 2012
http://itunes.apple.com/app/collinsonfx/id533360650?mt=8!Click_here to find out how to get CollinsonFX's free iPhone app
Paul Snow-Hansen and Jason Saunders approach the second nark in second place in the opening race of the 470 Olympic Regatta, Weymouth © Richard Gladwell http://www.richardgladwell.com
ECB President, Draghi, met with German Chancellor, Merkel, today and promoted the ECB Bond Buying Bailout plan as a sucess pointing to the relative stability experienced recently.
The worries still remain as fundamentally all they have achieved is a temporary reprieve in the form of lower short term interest rates. The fundamental crises not only remains but grows with individual nations deficits. Spain remains under pressure with protests and civil upheaval sparked by the introduction of further austerity measures. IMF President advises a write-off of unmanageable Greek debt setting a wonderful blueprint for other trouble member nations. Unsustainable deficits lead to unsustainable debt. Solution:Lend more money and artificially lower rates through monetary intervention to allow sustainability.
Debt continues to rise as deficits remain so write off the debt! Absolute lunacy! In the US, markets drifted lower after some uncomplimentary comments from Philly Fed Chairman Plosser. Plosser advises that QE Infinity will atificially lower short term interest rates and do little to lower long term rates. It will not, therefore, do much to boost growth or employment.
A fail from Plosser does little for the Fed's credibility!.The EUR dropped below 1.2900 with the news although stronger economic data pushed the single currency above the big figure. S&P Home Prices rose for the seventh straight month and Consumer Confidence hit a new high propelled by QE3.
Commodities tread water supported by a weak Dollar but undermined by risk appetite.The AUD held 1.0400 and the KIWI moved to .8240 showing some local support after a slow start to the week. Europe will remain the focus with US economic data driving sideway market direction.
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.