Collinson FX Market Commentary- February 5, 2013 - US on post GFC high
by Collinson FX on 5 Feb 2013
Collinson FX market Commentary: February 5, 2013
http://itunes.apple.com/app/collinsonfx/id533360650?mt=8!Click_here to find out how to get CollinsonFX's free iPhone app
Junk rig - 2013 Mahurangi Regatta © Richard Gladwell www.richardgladwell.com
The Dow broke through the all important 14,000 barrier for the first time since the global recession hit markets. The flood of liquidity must go somewhere and equities provide some return unlike fixed interest. The scramble to invest is a direct result of the panic to avoid 'missing the equity boat'!
Non-Farm Payrolls disappointed falling to 157,000 and Unemployment rose to 7.9% but this was ignored with 2012 data revised upwards and analysts confident the economy will support risk investments. The University of Michigan Confidence index surged to 73.8 reversing previous economic indicators. This was all the cash flush bulls needed and they jumped in boots and all. The record start to the year continues with gay abandon, fueled by Bernanke and wheelbarrows full of money.
The KIWI continued to reflect the assault on the USD, rising to just under 0.8450, after the RBNZ notably missed the opportunity to cut rates in response to the rising 'currency wars'. The AUD remained trading around 1.0400 as political turmoil engulfs the nation. The longest election campaign in history was closely followed by the arrest of crucial MP Thomson who props up this disastrous administration. The situation has deteriorated with a string of resignations from the cabinet as the rats abandon the sinking ship.
All eyes will turn to the RBA when they announce their rate decision with the heat on them to respond to the Fed and BoJ.
The coming week will continue to monitor the progress of the bulls on equity markets as technicals point to no ceiling in sight. ECB and the BoE will come into focus later in the week with little capacity to cut rates but their attitude to Money supply and commentary will have an impact.
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.
If you want to link to this article then please use this URL: www.sail-world.com/106286