Please select your home edition
Edition
Collinson and Co

Collinson FX Market Commentary- September 26, 2012 - Treading water

by Collinson FX on 26 Sep 2012
Olympic Flashback 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 www.photosport.co.nz

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

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.
Collinson and Co

Related Articles

Collinson FX Market Commentary - Sept 28 - USD weakens as others gain
KIWI jumped back towards 0.7300, while the AUD broke above 0.7650 This did little for the Dollar, as the EUR jumped to 11220, while the GBP regained 1.3000! The reserve weakness enabled the KIWI, which jumped back towards 0.7300, while the AUD broke above 0.7650. Economic data confirms Central Bank speculations and realities.
Posted today at 12:14 am
Collinson FX Market Commentary - Sept 27 - Oil Production cuts?
The NZD was under pressure, with speculation of RBNZ cuts, adding to worrying trade data. The NZD was under pressure, with speculation of RBNZ cuts, adding to worrying trade data. The trade deficit widened, with a rise in Imports and a fall in Exports, spurred by the overvalued KIWI. The NZD fell to the low 0.72's, but regained some ground overnight, to trade above 0.7250.
Posted on 26 Sep
Collinson FX Market Commentary - Sept 25 - The price of Brexit
NZD fell to 0.7230, while the AUD drifted back towards 0.7600 European economic data was benign, as expected, with Manufacturing/Services/Composite PMI data flat. French GDP contracted and promises of a future, without Britain, is not bright. The EU has brought in many members, over the years, but most are net 'takers'.
Posted on 26 Sep
Collinson FX Market Commentary - Sept 23 - USD continues to sag
NZD clings on to 0.7300. The AUD has pushed above 0.7650, but drifted in late trading, despite a weakening Dollar. The ECB and RBNZ continued the inaction of the Fed and the Bank of Japan. The RBNZ has left rates unchanged and seemed content with local economic conditions. The Jaw-boning of the currency continued, but to no avail, as the currency holds around 0.7300.
Posted on 24 Sep
Collinson FX Market Commentary - Sept 22 - Bank flicks policy
Commodity currencies moved higher, with the AUD testing 0.7600, while the KIWI consolidates above 0.7300. Markets were dominated by the Fed and the Bank of Japan overnight. The BoJ was the first cab off the rank, announcing a complete upheaval of the Banks Central Bank monetary policy. The attempt is to control asset growth and interest rates through monetary manipulation.
Posted on 22 Sep
Collinson FX Market Commentary - Sept 21 - Dairy Auction stunts KIWI
The New Zealand Dairy Auction revealed a halt in recent rises, stunting the currency The Dollar remained steady, with the EUR trading 1.1150, while the GBP slipped below 1.3000. The New Zealand Dairy Auction revealed a halt in recent rises, stunting the currency, with the KIWI attempting to hold 0.7300. Australian consumer confidence was steady, which was reflected in the currency, which traded around 0.7550. All eyes remain on the Fed and the Bank of Japan!
Posted on 21 Sep
Collinson FX Market Commentary - Sept 20 - Bloomberg bats for KIWI
Bloomberg has come in to bat for the KIWI, offering justification for the relative currency strength Bloomberg has come in to bat for the KIWI, offering justification for the relative currency strength, citing the 3.6% GDP number. This will undermine any argument the RBNZ has to cut further, but look at comparable interest rates?? The NZD trades around 0.7300, while the AUD holds around 0.7550, fighting a rising reserve.
Posted on 20 Sep
Collinson FX Market Commentary - Sept 18 - RBNZ decision factored in?
The AUD fell below 0.7500, while the NZD dropped to 0.7250, perhaps anticipating the coming RBNZ rate decision!? The Pounds momentum seems to be in reverse, with the Dollar aiding to the dovish Bank of England monetary policy. The coming week will not be a huge one for economic data releases, so expect further speculation, with regards Central Bank activity. The AUD fell below 0.7500, while the NZD dropped to 0.7250, perhaps anticipating the coming RBNZ rate decision!?
Posted on 19 Sep
Collinson FX Market Commentary - Sept 16 - US shrinks while NZ grows
The NZD also rallied back to 0.7300, boosted by the reserve and better than expected GDP growth The NZD also rallied back to 0.7300, boosted by the reserve and better than expected GDP growth, while Manufacturing PMI was steady. Data just confirms speculation on Central Bank moves and markets will focus on the Fed and Bank of Japan announcements next week!
Posted on 16 Sep
Collinson FX Market Commentary - Sept 14 - Opportunity for new theory
The NZD fell more than a big figure, back to 0.7230, while the AUD languished at 0.7450. Oil jumped back to $47/barrel, but the spike was not a boost for commodities in general, more a reaction to supply issues. The NZD fell more than a big figure, back to 0.7230, while the AUD languished at 0.7450. Economic fundamentals are obviously weak, precluding any return to normal monetary policy, allowing the academics to invent new economic theory?!
Posted on 14 Sep