Collinson FX Market Commentary- December 11, 2012 - Market rally
by Collinson FX on 11 Dec 2012
Collinson FX market Commentary: December 11, 2012
http://itunes.apple.com/app/collinsonfx/id533360650?mt=8!Click_here to find out how to get CollinsonFX's free iPhone app
Optimists head back up the ramp - Wakatere Boat Club © Richard Gladwell http://www.richardgladwell.com
Markets continued to rally, following last week's gains, with no bad news to drag them lower.
The 'Fiscal Cliff' negotiations continued to be aired publicly and with a growing feeling that Republicans will concede the momentum to the Democrats and allow tax rates to rise. There seems to be no serious attempt to address the budget/debt blowouts that are spiralling out of control. The past form of Obama is to come to a last minute deal which will be a desperate compromise and do little to address the fundamental issues.
This crisis will be averted until the next one arrives and establishes a trend of lurching from one crises to the next. Solving none but playing politics and winning. The day of reckoning is nigh! In Europe, the technocrat PM Monti has announced his resignation with another election to be called. The Lazarus, Silvio Burlesconi, is set to make yet another return!
The EUR was not aided by the news with the single currency slipping to 1.2930 and the GBP 1.6065. German Trade data reflected growth with both exports and Imports rising although Italian GDP continued to contract immersed in recession. Chinese Trade remained strong but the rate of growth slipped with demand dragging exports back to 2.9% from previous 11.6% growth. Japanese GDP contracted 0.9% pointing to a slow down in Asia which will impact commodity demand.
This failed to hit the AUD, which is testing 1.0500 once again and the KIWI that continues to defy gravity, trading just over 0.8300. Markets will continue to focus on Political developments in Europe and the US as negative data is now expected and has little impact on equities, commodities or currencies.
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.