sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: May10, 2013 - USD on the rise
Collinson FX Market Commentary: May10, 2013 - USD on the rise


'Mulithull start-220313 (41) - 2013 Auckland Cup, Day 2'    Richard Gladwell ©    Click Here to view large photo

Collinson FX market Commentary: May 10, 2013

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

Monetary Policy continues to dominate markets with Central Banks exerting complete control over a Fiscally incompetent elected Governments. The Bank of England left Rates unchanged but maintained the current stimulus. The British Central bank is boxed in with rising inflation and economic threats across the board.

The US Equity markets continued to rally to new record highs fueled by Bernanke. The party continues and the bubble stretches into May. The confidence spread to the Dollar with the Yen breaking 100 for the first time in four years. The EUR also slipped back to 1.3080 and the GBP to 1.5475. Jobless claims fell as the trend slowly improves.

In NZ, Unemployment surprised many, when the rate plunged from 6.8% to 6.2% boosting the KIWI back to 0.8440. The rise of the USD overnight pushed the NZD back under 0.8400. Australian Unemployment also fell having the same effect on the currency which also unwound with the resurgence of the 'Big Dollar'!

The AUD now trades at a recent low around 1.0080 and may challenge parity as economic conditions deteriorate with a dramatic budget expected next week in the lead up to Septembers election.

Central Bank action should be a sign of the desperate state of economies as emergency interest rate levels are just that. Any sign of further deterioration may overwhelm the liquidity flood currently supporting equities and commodities.

AucklandCupDay2-220313 (44) - 2013 Auckland Cup, Day 2 -  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: May 9, 2013
Monetary Policy continues to dominate markets with Central Banks exerting complete control over a Fiscally incompetent elected Governments. The Bank of England left Rates unchaged but maintained the current stimulus. The British Central bank is boxed in with rising inflation and threat across the board.

The US Equity markets continued to rally to new record highs fueled by Bernanke. The party continues and the bubble stretches into May. The confidence spread to the Dollar with the Yen breaking 100 for the first time in four years. The EUR also slipped back to 1.3080 and the GBP to 1.5475. Jobless claims fell as the trend slowly improves.

In NZ, Unemployment surprised many when the rate plunged from 6.8% to 6.2% which boosted the KIWI back to 0.8460 but the rise of the USD overnight pushed the NZD back under 0.8400. Australian Unemployment also fell having the same effect on the currency which also unwound with the resurgence of the 'Big Dollar'!

The AUD now trades at a recent low around 1.0100 and may challenge parity as economic conditions deteriorate with a dramatic budget expected next week in the lead up to Septembers election. Central Bank action should be a sign of the desperate state of economies as emergency interest rate levels are just that.

Any sign of further deterioration may overwhelm the liquidity flood currently supporting equities and commodities.

Multihull start - 2013 Auckland Cup, Day 2 -  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: May 8, 2013
The RBA joined the 'currency wars' yesterday as they cut rates to the lowest levels since 1959/60. These record lows may not be the end, as the powder remains dry, and the Governor remains ready and able to cut further. The economy is showing signs of distress as the Australian position has deteriorated in the last year after surviving the GFC relatively well.

The strong Fiscal and Monetary position the economy was in prior to the GFC had allowed the Ozzies to weather the storm but the Global paradigm has changed and the Labor Socialist Government have carried Keynsian theory a bit too far. The have stretched the tenure of stimulus beyond comprehension.

They have borrowed to replace revenue (but never lost the revenue) and have exhausted the all reserves and piled up a AUD$300 Billion debt! When your revenues continue to increase but your expenditures exceedRBA cuts to lowest x these, then fiscal incompetence is to blame. The RBA has acted to counter the 'currency wars' with the AUD stubbornly holding above parity for an extended period destroying trade competitiveness.

The Fed has added $2.3 Trillion to the Balance sheet since 2008 and the ECB have similar excess. The BoJ had recently joined the party and the RBA had had enough. Ironically the poor economic conditions, that have triggered these actions, have been the cause of bubbles with no better example than world equity markets. The DOW has now blasted through the 15,000 mark and with $85 Billion added every month by the Fed, liquidity is the problem!

The EUR hit 1.3080 as the GBP slipped below 1.5500. The Big Dollar is being fundamentally undermined by Bernanke, thus the impact of the RBA's 0.25% cut was minimal, falling to 1.0175. The KIWI was dragged back under the 0.8500 mark. It is very difficult to fight against Central Banks and bubbles created will cause much greater problems anon!

Keelboat start- 2013 Auckland Cup, Day 2 -  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: May 7, 2013

Equity markets were steady after the substantial gains of last week boosted by an ECB rate cut and a better than expected Non-Farm Payrolls. European markets absorbed steady PMI numbers but falling ECB Retail Sales.

The endless recession spurred Draghi back to the microphone where he promised to take whatever action necessary to right the ship.

The immediate impact was felt in the currency with the EUR falling back to 1.3075. The US markets were steady with the DOW hitting 15,000 on Friday but failing to hold and has now set a benchmark. There was little local news but plenty to come, plus add in the developing situation spreading war across the Middle East! The AUD slipped lower to 1.0250 in preparation for an expected cut from the RBA this week.

Australian Retail Sales contracted and Job Advertisements also fell 1.3%. Economic fundamentals have been deteriorating in Australia for some time and now they are amidst the 'longest election campaign in History', expect unprecedented volitility.

The KIWI held 0.8500 and continues to book gains against its trans-Tasman cousin. Testing times on the Geo-Political front with economic fundamentals hardly inspirational.

Elliott 5.9 - 2013 Auckland Cup, Day 2 -  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: May 6, 2013
Non-Farm Payrolls came in better than expected fueling the rally in equities. The Dow has now toyed with the 15,000 level and the endless rally continues with no likelihood of Bernanke turning off the liquidity taps. This boosted the EUR which moved back to 1.3115 and the GBP to 1.5565.

Risk appetite continues to flourish boosting associated higher yielding currencies. The AUD breached 1.0300 and the KIWI moved over 0.8500 once again. The rally has been sustained by concerted Central Bank intervention and seems likely to continue until fundamentals tip the balance and cause reality to crash the party. Non-Farm Payrolls gained 165,000 with Unemployment falling to 7.5%.

The good news supported the markets despite Factory Orders falling 4%.

The new week will bring more economic data analysis and perhaps consideration of an interest rate cut in Australia. This is May!?

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

  

Click on the FB Like link to post this story to your FB wall

http://www.sail-world.com/index.cfm?nid=109338

1:00 PM Fri 10 May 2013GMT


Click here for printer friendly version
Click here to send us feedback or comments about this story.

Click for further information on
2011 Collinson & Co

Related News Stories:

09 May 2013  Collinson FX Market Commentary: May 9, 2013 - Oz down KIWI up
08 May 2013  Collinson FX Market Commentary: May 8, 2013 - RBA cuts to 1959/60 rate
07 May 2013  Collinson FX Market Commentary: May 7, 2013 - KIWI catching up
06 May 2013  Collinson FX Market Commentary: May 6, 2013 - Oz interest rate cut?
03 May 2013  Collinson FX Market Commentary: May 3, 2013 - Bulls on the handlebars
02 May 2013  Collinson FX Market Commentary: May 2, 2013 - Unimpressive largesse
01 May 2013  Collinson FX Market Commentary: May 1, 2013 - KIWI in for a caning?
01 May 2013  Collinson FX Market Commentary: April 30, 2013 - Euro defies gravity
29 Apr 2013  Collinson FX Market Commentary: April 29, 2013 - KIWI market darling
27 Apr 2013  Collinson FX Market Commentary: April 26, 2013 - Poms avoid a bath
MORE STORIES ...




News - USA and the World



































































Sailing through STEM Night at California YC
Six Metre European Championship - High temps and little wind on day 3
Women’s Match Race Golfe du Morbihan - Light wind opener in Vannes
International Moth Worlds: Rashley ahead as Aussies close in
ISAF Youth Match Racing Worlds - American unbeatable on day 1
RS Feva World Championships - All set at Yacht Club de Carnac
ISAF Rolex World Sailor of the Year Awards - Nominations now open
BIC Techno 293 Worlds - Steady winds on day 2 + Video
29er North American Open Championship - Qualifying series wraps up
Opening ceremony O'pen Bic World Cup, Travemunde Week, Germany
Six Metre Europeans - Wind fails to make an appearance on day 2
Edgartown Race Weekend - Let the sailing (and good times) begin
ISAF Youth Match Racing World Championship - Action commences July 23
International Moth Worlds - Mothballed on day 4 + Video
Spirits high as Team Alvimedica completes Transatlantic crossing
Gladwell's Line: A change of direction needed in the America's Cup *Feature
29er North American Championship - Day 1 in Kingston
Red Bull 49erFX: First look at the Olympic sailing venue at Rio
Fuerteventura Kiteboarding Grand Slam - Classic conditions on day 3
NYYC Race Week Part II images by Rolex/Daniel Forster
Drowning or electric shock? What you need to know to help save a life   
BIC Techno 293 Worlds 2014 - Day 1   
Six Metre European Championship - Blazing sunshine on opening day   
National Sailing Hall of Fame to present Lifetime Achievement Award   
International Moth Worlds: Greenhalgh and Rashley tied at the top   
PWA Pozo World Cup - Fantastic finale determines winners   
Six Metre Class British Open Championship - Llanoria and Valhalla win   
Anna Tunnicliffe set to compete at the CrossFit Games   
America's Cup: Oracle Team USA holds foiling camp at Wangi SC   
Volvo Ocean Race: Abu Dhabi OR completes double Atlantic crossing   
Volvo Ocean Race: Team SCA has a 'pull through day' off the Canaries   
No tiller sailing - how to steer using just the sails + Video   
International Moth Worlds: Three bullets in a row for Greenhalgh   
U.S. Junior Women’s Singlehanded Championship - Sophia Reineke wins   
BIC Techno 293 Worlds 2014 - Day 0 Opening   
Fuerteventura World Cup - Slalom action highlights day 2   
2014 Governor's Cup - Sam Gilmour of RFBYC victorious again   
Farr 40 West Coast Champ - Skipper Alberto Rossi leads Enfant Terrible   
Flying Dutchman World Championships - Magyars are the Masters   
Final day shakes up standings at Cape Panwa Hotel Phuket Raceweek   


For this week's complete news stories select    Last 7 Days
   Search All News
For last month's complete news stories select    Last 30 Days
   Archive News





Sail-World.com  


















Switch Default Region to:

Social Media

Asia

Australia

Canada

Europe

New Zealand

United Kingdom


http://www.sail-world.com/event_images/image/Twitter_logo_small.png http://www.sail-world.com/event_images/image/FaceBook-icon.png  http://www.sail-world.com/event_images/image/RSS-Icon.png

United States

Cruising Northern

Cruising Southern

MarineBusiness World

PowerBoat World

FishingBoating World

 

Contact

Commercial

News

Search

Contact Us

Advertisers Information

Submit news/events

Search Stories/Text

Feedback

Advertisers Directory

Newsletter Archive

Photo Gallery

 

Banner Advertising Details

Newsletter Subscribe

Video Gallery

Policies

 

 

 

Privacy Policy

 

 


Cookie Policy

 

 



This site and its contents are © Copyright TetraMedia and/or the original author, photographer etc. All Rights Reserved.  Photographs are copyright by law.  If you wish to use or buy a photograph contact the photographer directly.
XLXL NEW US
LocalAds   DE  ES  FR  IT