sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: October 11, 2013 - Surge ahead of Deal
Collinson FX Market Commentary: October 11, 2013 - Surge ahead of Deal


'Wanaka - San Francisco 18ft International - Day 3, 11 September 2013'    Richard Gladwell ©    Click Here to view large photo

Collinson FX market Commentary: October 11, 2013

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

US Equities surged overnight with the prospect of a deal on Capitol Hill. Talk is that the Republicans are ready to extend debt ceiling limits and postpone any stand-off. Caving, will embrace the markets, as equities surged but long-term problems remain. Currencies remained relatively unaffected with the EUR trading 1.3540 and the GBP 1.5975. Currencies and Bonds remain an impartial litmus on this political hyperbole.

Central Bank remain the conduit and their intentions are clear, globally! Keep the pump primed and flood markets with liquidity! Yellen will continue to print money, with gay abandon, because her socialist principles guide her towards the humanitarian Keynesian abyss, with no regard for Monetary rectitude. Risk currencies booked gains with the AUD hitting 0.9450 although the KIWI still struggled below 0.8300.

Markets are controlled by the Political impasse and Republicans look set to cave to Obama and equity markets surged. Democrats have seemingly won the game of chicken but their will be a huge political price to pay for this surrender!

C-Tech - 18ft International - Day 3, 11 September 2013  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: October 10, 2013
Obama announced the appointment of the new Fed Chairman overnight and this overshadowed the growing crises over the Debt Ceiling/Government shutdown. The new Federal Reserve chairman is Janet Yellen and is the first female appointment. She is an academic and a dove, but significantly, second choice of the Administration.

The immediate effect on the market was to reverse the steady decline in equities, as she is seem as a dove on monetary policy and is likely to extend tapering, thus expanding bond purchases and increasing liquidity. Ordinarily this would adversely impact the Dollar but the prospects of a political deal has seen the EUR retrace back to 1.3510 and the GBP break the big figure to the downside just around 1.6000. Commodities remained mixed and the associated currencies were steady with the AUD 0.9430 and the KIWI consolidating below 0.8300.

Fed minute releases revealed most members expected tapering to begin this year and to be completed by mid-2014. Failure to act was seen as a challenge to credibility but this was ignored, as slowing economic data, pushed them to err on the side of status-quo. The Fed's actions have been to counter the grossly irresponsible fiscal policy, but Yellen's politics are partisan and will denigrate the office by her appointment.

The debt debate will continue to drive markets with developments dictating direction!

- 18ft International - Day 3, 11 September 2013  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: October 9, 2013
Markets are transfixed with the Government shutdown and the Debt Ceiling impasse. This is a growing crises and will impact on global economies.

This happened a couple of years ago and resulted in a big hit to global markets led by equities. The US had their credit rating downgraded, despite the aversion of default. It appears that both sides are not prepared to negotiate and a crises is imminent.

Equities continued to bleed although currencies remain virtually unaffected with the EUR trading at 1.3575 and the GBP 1.6080. European economic conditions seem to be slowing and this has not been improved by the prospects in the US with default on the cards.

Commodity prices also remained mixed with the AUD holding 0.9400 but the KIWI slipping below 0.8300. It appears most directional pulls come from Political negotiations in the US and the failure of the Government negotiate a compromise.

Brinkmanship and last minute deals are a probable outcome, but damage can be done in the meantime!

Stoke (NZL) - 18ft International - Day 3, 11 September 2013  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: October 8, 2013

The US Government partial shutdown and the looming debt ceiling expiry continued to dominate market direction.

An impasse has grown between the Republican House and the Democratic Presidency and Senate. The Republicans have been forced into a corner and do not want to capitulate and the Democrats want to force their position of strength. The problem only becomes more serious when the Debt Limit is reached mid October. It is hard to see a compromise without a capitulation and the Tories appear the more likely. The disruption to markets come with the uncertainty and this has been hitting equities hard in a month renown for major equity adjustments.

The USD was steady with the EUR trading 1.3575 and the GBP 1.6085. Commodities were mixed and the AUD traded 0.9435 while much of the Country was closed for Labour Day. The KIWI also experienced light trading and held near 0.8300. Watch US and European bonds for signals of danger during these political negotiations as this will reflect the danger levels in the 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

  

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

http://www.sail-world.com/index.cfm?nid=115634

12:47 AM Fri 11 Oct 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:

10 Oct 2013  Collinson FX Market Commentary: October 9, 2013 - Markets transfixed
10 Oct 2013  Collinson FX Market Commentary: October 10, 2013 - Debt crisis grows
09 Oct 2013  Collinson FX Market Commentary: October 8, 2013 - Debt ceiling looms
05 Oct 2013  Collinson FX Market Commentary: October 4, 2013 - Shutdown bites
04 Oct 2013  Collinson FX Market Commentary: October 3, 2013 - Battlin' on
03 Oct 2013  Collinson FX Market Commentary: October 2, 2013 - Shutdown on ignore
02 Oct 2013  Collinson FX Market Commentary: October 1, 2013 - Shutdown looms
28 Sep 2013  Collinson FX Market Commentary: September 27, 2013 - Break back
07 Sep 2013  Collinson FX Market Commentary: September 5, 2013 - Dollar rebounds
04 Sep 2013  Collinson FX Market Commentary: September 3, 2013 - Chinese growth
MORE STORIES ...




News - USA and the World







































International Moth Worlds: Rashley ahead as Aussies close in by Mark Jardine / YachtsandYachting.com,




















International Moth Worlds - Mothballed on day 4 + Video by Mark Jardine / YachtsandYachting.com,




Gladwell's Line: A change of direction needed in the America's Cup *Feature by Richard Gladwell/Sail-World.com/nz,




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   
2014 -15 Volvo Ocean Race: Team Alvimedica pushing towards Southampton   
NYYC Race Week - Saving the best for last   
VX One North American Championship - Chris Alexander commands   
2014 Cape Panwa Hotel Phuket Raceweek - Waiting game on Day 3   
International Moth Worlds: Thunderstorms delay racing on Day 1   
Fuerteventura World Cup - Impressive tricks on day 1   
2014 Governor's Cup - Two former winners in the finals   
America's Cup: Iain Murray explains reasons for Australian withdrawal *Feature   
Wilson and Roble remain number one match racers in U.S.   
2014 ISAF Youth Match Racing World Championship - Set to start   
PWA Pozo World Cup - Moreno twins dominate home spot   
ISAF Youth Worlds - Record breaking regatta in Tavira + Video   
Melges 32 European Championship - Robertissima remains out front   
Farr 40 West Coast Championship - Italians take one-point lead   
Melges 32 European Championship - Day 3 images by Carlo Borlenghi   
New York Yacht Club Race Week - Marstrom 32 fleet off to anxious start   
Melges 32 European Championship - Day 3 images by Max Ranchi   


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