sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: September 12, 2012 - Bad news is good?
Collinson FX Market Commentary: September 12, 2012 - Bad news is good?

'Image of the Day Swan fleet sails along the Costa Smeralda - 2012 Rolex Swan Cup'    © Rolex/Carlo Borlenghi

Collinson FX market Commentary: September 12 2012

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

Good news is bad news and bad news is good! It is a wonderful world of make believe seemingly infantile in the nature. Bad economic news brings the prospect of further Central Bank intervention and thus further liquidity slushing around an already flooded economy.

The news from the US has been weak and deteriorating and yet risk appetite is on the rise with the prospect of QE3. Equities are now trading at 2007, 5 year highs on the sugar high of monetary stimulus.

Fundamentals are dreadful and something must give... besides the US$! German Courts look set to sanction the ECB's Bond Bailout package which gave momentum to equities and currencies.

The EUR rose to 1.2860 and the GBP 1.6075. China has endorced the projected growth rate of 7.5% giving confidence to commodity markets and boosting the AUD back to 1.0450.

The KIWI also booked gains rising to test 0.8200 with further rises in the local Real Estate market as House Prices surge. Moody's have indicated the AAA status of the USA may be under threat unless they address the spiralling Debt/GDP ratio.

This had little effect of market confidence as the addicts look to the Fed for further assistance Thursday!

Collinson FX market Commentary: September 11 2012

Economic data continued to disappoint markets with Asia leading the way. China disappointed with trade weakening and the Chinese stimulus is an attempt to address this through a domestic replacement. Chinese Industrial Production has also slowed with inflationary pressures growing. Japan GDP suffered from weaker trade numbers and now the two biggest economies in Asia are reflecting the recessionary nature of the global economy.

The Bond-Bailout package has drawn a line under debt costs for imperiled nations allowing some space but done nothing the address the cause. This week will focus closely on the German Courts and their preference to support the ECB bailout. The decision will come ahead of a meeting of the 'Troika' of the ECB, EC and IMF. Another headliner from Europe is the elections in the Netherlands which should reflect the reluctance of the people to support the EU and the bailouts.

The US has taken the new measures in Europe and bought risk with the USD falling and equities rallying strongly. Markets will watch Europe and the FOMC rate decision. The EUR remains well supported at 1.2750 and the GBP trading around 1.6000. US markets are now relying on QE and Central Bank intervention as economic conditions deteriorate.

The AUD remains well bid trading 1.0330 and the KIWI dropping under 0.8100.

NZ Trade data confirms the global contraction as does yesterdays fall in Manufacturing. The RBNZ will announce their plan of action which will be nothing as usual. They should cut rates and provide stimulus in an effort to boost the domestic market and counter the unrivaled liquidity in Asia, Europe and the US!

The Reserve Bank will be wary with the boom in the housing market taking advantage of low interest rates. House Sales rose 16.2% and House Prices 1.3 for the last month. Low interest rates are one part of the perfect storm. Demand has risen with limited supply as building costs have skyrocketed over the previous decade.

Auckland has led the way and has now risen above pre-GFC levels and presents a problem to authorities.

Equities are looking nervous and any major moves will impacts currencies and commodities.


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=101971

12:15 PM Wed 12 Sep 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:

13 Sep 2012  Collinson FX Market Commentary: September 13, 2012 - KIWI close to .82
11 Sep 2012  Collinson FX Market Commentary: September 11, 2012 - AUD up, KIWI down
08 Sep 2012  Collinson FX Market Commentary: September 8, 2012 - Risk appetite rise
07 Sep 2012  Collinson FX Market Commentary: September 7, 2012 - Super Mario enters
06 Sep 2012  Collinson FX Market Commentary: September 6, 2012 - Markets on edge
05 Sep 2012  Collinson FX Market Commentary: September 5, 2012 - Slow start in US
04 Sep 2012  Collinson FX Market Commentary: September 4, 2012 - Looking to China
03 Sep 2012  Collinson FX Market Commentary: September 3, 2012 - Jackson Hole past
31 Aug 2012  Collinson FX Market Commentary: August 31, 2012 - Eyes on Jackson Hole
30 Aug 2012  Collinson FX Market Commentary: August 30, 2012 - All quiet
MORE STORIES ...




News - USA and the World



















Audi Melges 20 U.S. Nationals - Oleander takes early lead by International Audi Melges 20 Class Association,






2014 Detroit Cup - Sam Gilmour leads by Dobbs Davis, Detroit, Michigan








Audi Hamilton Island Race Week: Riding the AC45 - VIDEO by Crosbie Lorimer, Hamilton Island










America's Cup: Five Challengers sign-on for 35th Match by Richard Gladwell/Sail-World.com/nz,


Volvo Ocean Race CEO Knut Frostad talks Time and Money (Part II) *Feature by Rob Kothe and the Sail-World team,


















AWT Quatro Desert Showdown at Punta San Carlos by American Windsurfing Tour,




2014 IFDS Disabled Sailing World Championship - Day 2
Audi Hamilton Island Race Week; MC38s Lindeman Island Race VIDEO
2014 Audi Melges 20 U.S. National Championship - Ready to rock
IFDS Worlds - Wind delays, but racing continues in Halifax
IFDS World Championships - Day 2 images by Jude Robertson
MS Cup - Three days until the start
America's Cup: Rod Davis - Time for a change after ten years with team *Feature
ISAF seeking hosting bids for Nations Cup
Laser 4.7 Youth Worlds - Luvisetto and Alexadr Boite victorious +Video
IFDS World Championships - Action shots by Tim Wilkes
Maxi yacht rendezvous this September in Sardinia
World Yacht Racing Forum 2014: 'Growing the business of Yacht Racing'
Clipper Race: 2015-16 edition of world's longest ocean race 70% full
Sevenstar Round Britain and Ireland - Swish smash 5th World Record
Leaderboards take shape at the Nanjing Youth Olympic Games 2014
IFDS Worlds - Hot competition on first day of racing
Challenging Conditions - CORK OCR
IFDS World Championship - Day 1 for the US Sailing Team
2014 Melges 20 World Championship - Countdown begins
2014 Nanjing Youth Olympic Games - Day 3
America's Cup: Team NZ wish Davis well with new team *Feature   
Fisher's View: Sailing perfection at Hamilton Island- Day 3   
Roble and Wilson still number one match racers in the U.S.   
2014 Formula Kite World Championship Day 1   
IFDS World Championship - Day 1 images by Jude Robertson   
Volvo Ocean Race: Forget the f-word - Team SCA profiled   
52 Super Series - Fleet grows, 2015 dates revealed   
420 and 470 Junior Europeans - Teams from 9 nations on the podium   
IFDS Worlds - Former president presented with ISAF awards medal   
Nanjing Youth Olympic Games - Improvements aplenty in Byte CII fleets   
America's Cup: New Zealand loses top coach to Artemis Racing   
Volvo Ocean Race 2014-15 CEO Knut Frostad talks (Part I) *Feature   
Sevenstar Round Britain and Ireland Race Day 9 - Swish on record pace   
2014 CORK Olympic Classes Regatta - Day 3   
2014 Nanjing Youth Olympic Games - Day 2   
2014 IFDS World Championship: Opening Ceremony images   
Opera House Cup - Images by Ingrid Abery   
Teams descend upon Cowes for inaugural J/111 World Championships   
Hamilton Island Race Week: Everywhere there's smiley people   
IFDS World Championships - US Paralympic hopefuls ready for racing   


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 WAS US
LocalAds   DE  ES  FR  IT