Sail-World.com  Monday 28 July 2014

Home Graphical | News Text | Powerboat-World | MarineBusiness | Newsletters | SW Aus | NZBoating-World | Emirates TeamNZ | Features | Photo Gallery | FishingBoating | Newsletter Subscription Here | Search Sail-World


sail-world.com -- Collinson FX Market Commentary: April 30, 2013 - Euro defies gravity

Collinson FX Market Commentary: April 30, 2013 - Euro defies gravity    
Wed, 1 May 2013


Collinson FX market Commentary: April 30, 2013

Click here to find out how to get CollinsonFX's free iPhone app

Equity markets continued the rally in Equities, despite the slew of weak economic data, emanating from a positive European rally. Expectations are that the ECB will cut rates to 0.5% and in addition launch in to a round of QE and an aggressive debt monitisation program. The 'currency wars' have resulted in a recovery in US and Japanese equities and the ECB are considering throwing caution to the wind.

Debt monitisation was a pre-GFC no-no for all Central Banks, as the purchase of your own Government debt to fund ever increasing deficits and debt was seen as economically corrupt. Central Bankers crossed the line and have now abandoned many of the principles of Monetary Policy previously sacrosanct.

The news from Europe should have resulted in further erosion of the value of the single currency but had the opposite effect. The EUR rallied to 1.3100, reacting to the rise in risk appetite and boosted by an increase in commodity demand. The GBP held steady at 1.5480 and all looks positive across Europe with a Government in Italy and the new pro-growth anti-austerity sentiment prevailing.

Forget the critical deficits driving debt to unserviceable levels as interest rates flooded with liquidity should allow this gross delusion to continue. US Equity markets rallied on the back of EU prospects with the S&P hitting new highs as the rally continues. Pending Home Sales rose 1.5% and this was a further sign from the market Gods to pile in!

The Dallas Fed Activity Index plunged 15.6% but this was largely ignored as Bernanke drives investment decisions in search of yield building bubbles. Economic fundamentals have all pointed in the opposite direction and May could be the reality check the market finally needs.

The AUD bounced on further rises in demand for commodities and traded 1.0330 with the KIWI continuing to outperform at 0.8540. Scary times with frenzied yield investment and unprecedented technical levels.


Collinson FX market Commentary: April 29, 2013

US GDP data frightened many equity investors as markets fell flat. First quarter growth in the US was 0.4% and an annualised rate of 2.5% below the expected 3%. The news was not surprising as economic fundamentals have been weak all year despite the much vaunted 'housing recovery!'

Data will be out this coming week placing some doubt on market forecasts in the leading indicator that is housing.

This coming week will look closely at this and pay close attention to the Fed's rate decision and the ECB, who are expected to cut rates as Europe continues to battle recession. The EUR held above 1.3000 and the GBP looks set to test 1.5500! Risk appetite has fallen recently despite the continuing flood of liquidity being pumped into the US, Japan and the EC.

The major employment reports will also be released in the US which will probably confirm the stagnation in the worlds largest economy. Commodities remain bid supporting the AUD at 1.0275 but this will be vulnerable to any major equity correction in May!.

The KIWI continues to gain support and has become a market darling trading up around the 0.8500 but this too will suffer uncertainty in Equities and risk markets!

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.

by Collinson FX



Our advertisers are committed to our sport, please support them! (Graphics)
Contact us , ph: +61 2 8006 1873, , fax: +61 2 8076 0459 or complete our feedback form. View our Privacy Policy. Photographs are copyright by law, if you wish to use a photograph from www.sail-world.com, please Contact us. [Go Home(Graphics)]
Make sail-world.com Australia my default page.    Make sail-world.com Cruising International my default page.  Make sail-world.com Cruising Australia my default page.  Make sail-world.com Asia my default page.   Make sail-world.com New Zealand my default page.   Make sail-world.com UK my default page.   Make sail-world.com USA my default page.  


Visit another region : Sail-World Australia    Sail-World Cruising International   Sail-World Cruising Australia   Sail-World Asia   Sail-World New Zealand   Sail-World UK   Sail-World USA  

Onesails.com - Workforce
OneSails is the culmination of over 35 years of experience accumulated by our team in design and technology applied to sail-making.
[More info]
http://www.onesails.com

GME Standard Communications Pty Ltd
Leaders in communications and navigation. Their goal has always been to make products whose innovation, convenience and peace of mind can help improve the lives of their customers.
[More info]
http://www.gme.net.au

VicSail Sydney
Vicsail Sydney Pty Ltd, launched into the Australian sailing fraternity in 1983 and has been sailing strong ever since. At Vicsail, “We Sail the Boats We Sell”.
[More info]
http://www.vicsailsydney.com.au