sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: November 15, 2012 - Economic revolt
Collinson FX Market Commentary: November 15, 2012 - Economic revolt

'Image of the Day Veloce had its first outing in the Club Marine Series this season. - Club Marine Series 2012/2013, Melbourne, Australia'    Teri Dodds ©

Collinson FX market Commentary: November 15, 2012

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

The world is in turmoil with the middle east on fire, Europe mired in anti-austerity riots and the US struggling with economic revolt. European riots spread across Europe including Greece, Spain, Italy and Portugal emanating directly from the austerity measures imposed to avoid economic collapse.

The crisis is spiralling out of control with protests moving to France and Belgium. The continued budget deficits add further to the crippling debt and the printing of more EURO's will not solve the fundamantal problem. Live within your means is a novel concept. The other major problem is the disfunctional single currency which is under real threat.

The GBP fell to 1.5850 after the Bank of England released minutes citing the rising inflation and the EU impacting growth which may require further QE undermining the currency. In the US Retail Sales fell and as the Fiscal Cliff approaches and it is likely economic indicators will continue to confirm deterioration. The result of the fiscal cliff will throw the US back in to recession dragging the global economy with it. Obama will raise taxes and cut defence and the economy will suffer.

Make no mistake, the Americans face an economic crises which this administration is incapable of solving.

The global situation directly impacts growth and demand which directly effects China and thus commodity prices. The AUD fell back to 1.0380 and the KIWI 0.8115.

This is likely to continue and when Central Banks realise the need to match the Fed, ECB and BofE the rate cuts will add further downside pressure.

Image of the Day Vendee Globe - Macif - Francois Gabart (FRA) -  Jean-Marie Liot - DPPI_- Vendée Globe ©   Click Here to view large photo

Collinson FX market Commentary: November 14, 2012

Markets were steady overnight with European equities rising and Bond Yields slipping reflecting a reprieve for Greece. EU Finance Ministers agreed to extend budgetry requirements for Greek austerity measures out to 2016. The waver allows Greece to continue to add to the already overwhelming debt by running budget deficits until 2016 when they will limit this to 2% of GDP.

They also agreed to defer the next bailout tranche predictably kicking the proverbial can down the road. UK Inflation crept up to 2.7%, despite the weak state of the economy, which must be unsettling for Central Bankers as the sleeping giant could well bring all the chickens home! The GBP remained weak at 1.5875 and the EUR tests 1.2700. The strong Chinese economic data has given new legs to the AUD which trades 1.0425 and the KIWI approaching 0.8200.

The risk sentiment will again be tested as the EU debt crises rolls on and the US Fiscal Cliff negotiations drag on. Obama has never lead on Economic policy and defers to Congress who are divided. To avoid the fiscal cliff and certain recession is a supposed priority but precedence points to brinksmanship until the deadline and then inaction and deferment.

Democrats would not be unhappy seeing tax rises and cuts to the military so Republicans should stand aside and let the lunatics run the asylum as the people advocated last week. Democrats have not passed a budget in more than three years and the plan is to have no plan. This is similar to European Politicians and should result in a disaster for the global economy.

Images of the Day Saveol - skipper sam Davies (GBR) -  Jean-Marie Liot - DPPI_- Vendée Globe ©   Click Here to view large photo

Collinson FX market Commentary: November 13, 2012
Veterans Day in the US means a very light trading day on Wall St and thus globally with little direction.

Markets did earlier focus on extremely positive economic data from China, with the Trade surplus expanding at the best rate in four years. The Trade Surplus accelerated at a very strong pace as exports boomed boosting commodity currencies with the AUD moving up to 1.0415 and the KIWI to 0.8175.

The link with other risk-currencies has been broken with the EUR falling back to 1.2715 and the GBP down to 1.5875. The news from China has been positive but ultimate dependence on the European and US markets has tempered the gains. In Europe the EU Finance Ministers gather this week with approval of the next Greek bail-out tranche on the agenda.

The Troika are reticent to approve this despite the Greeks passage of the new budget over the weekend. The problem is the fiscal deterioration with forecasters predicting Greek debt to rise to more than 190% of GDP! One thing for sure is that this will not end well!

The US meanwhile face the 'fiscal cliff' and the 'debt ceiling' which will inevitably lead to higher taxes no matter what the solution. The solution will definitely negatively impact US (and thus global) growth.

Obama has little grasp on the requirements of the economy and survives on personal popularity. The peoples affection will abandon him when the economy plunges back in to recession in the New Year!

You get what you pay for!

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=103809

12:25 PM Thu 15 Nov 2012GMT


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:

16 Nov 2012  Collinson FX Market Commentary: November 16, 2012 - Billions shed
13 Nov 2012  Collinson FX Market Commentary: November 13, 2012 - Light Veterans Day
11 Nov 2012  Collinson FX Market Commentary: November 9, 2012 - Equities crash
07 Nov 2012  Collinson FX Market Commentary: November 7, 2012 - Equities rally
06 Nov 2012  Collinson FX Market Commentary: November 6, 2012 - Markets go quiet
03 Nov 2012  Collinson FX Market Commentary: November 3, 2012 - Confidence falls
02 Nov 2012  Collinson FX Market Commentary: November 2, 2012 - US strong
01 Nov 2012  Collinson FX Market Commentary: November 1, 2012 - US re-opens thin
31 Oct 2012  Collinson FX Market Commentary: October 31, 2012 - US remains closed
30 Oct 2012  Collinson FX Market Commentary: October 30, 2012 - Sandy shuts US
MORE STORIES ...




News - USA and the World















Volvo Ocean Race: Team Vestas Wind gears up in Alicante by Richard Gladwell/Sail-World.com/nz,


























Soling North American Championship concludes on Lake Erie by Canadian International Soling Association,


























ISAF Sailing Worlds - Four champions crowned as racing wraps up
ISAF Sailing Worlds, Santander - USA finishes Top-10 in 4 classes
Outteridge and Jensen – What doesn’t kill you makes you stronger
ISAF Sailing Worlds, Santander - Giles Scott wins Gold
Santander Worlds - 49ers Burling and Tuke clear ahead
ISAF Sailing Worlds – Live broadcast - Medal races
Starboard Hatteras Wave Jam day 5
WMRT Chicago Match Cup 2014 – GAC Pindar through to the semi-finals
Bart’s Bash 2014 at Royal Hong Kong Yacht Club in Victoria Harbour
Bart's Bash: First event in at Wakatere in New Zealand
ISAF Sailing Worlds Santander 2014 - AUS Laser and 470 Medals + video
2014 Patriot Regatta - U.S. Coast Guard team wins
2014 ISAF Sailing World Championships - Santander - Day 9 highlights
2014 Etchells North American Championship – Day 2
Chicago Match Cup - Top four tour teams tackle tomorrow in semi-finals
470 Men and Women Worlds - Champions decided in Santander
ISAF Sailing Worlds, Santander: 49er and Nacra 17 world titles claimed
ISAF Sailing Worlds - Caleb Paine through to Finn medal race + video
ISAF Worlds - 49er, 49erFX, Finn and Nacra 17 Rio 2016 spots taken
ISAF Sailing Worlds - 470 Women's medal race images by Thom Touw
ISAF Sailing Worlds, Santander: Scott all set to lift Finn world title   
ISAF Sailing Worlds - 470 Men's medal race images by Thom Touw   
ISAF Sailing Worlds, Santander - Aussies and Austrians claim 470 gold   
ISAF Sailing Worlds, Santander: 470 awards images by Sail-World.com   
ISAF Sailing Worlds, Santander - 470 medal race images by Jesus Renedo   
Annapolis-to-Newport Race - 'What to Expect' Seminar to take place   
Royal Cup Marina Ibiza - No racing on penultimate day   
Belcher takes record fifth 470 World Championship   
ISAF Sailing World Championships - Santander - Day 8 video highlights   
2014 Great Lakes Team Racing Championship about to set off   
2014 Etchells North American Championship - Day 1   
2014 U.S. Multihull Championship - Day 1   
2014 Chicago Match Cup - Repechage top four determined in final flight   
J/24 World Championship - 35th anniversary preview   
470 Men and Women Worlds - Santander medal race line-up confirmed   
ISAF Sailing Worlds, Santander - Day 8 images by Sail-World.com   
Royal Cup Marina Ibiza - Quantum Racing stumbles in coastal race   
ISAF Sailing Worlds, Santander - Americans ready for 470 medal races   
ISAF Sailing Worlds, Santander: Action ramps up with end zone in sight   
Big Boat Series - It's not the size, it's the length   


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