sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: September 14, 2012 - Bernanke acts
Collinson FX Market Commentary: September 14, 2012 - Bernanke acts

'Image of the day 'We’re OK, they are clear astern! '

ETNZ’s AC 72 takes aim at one of the Friday night racers on Auckland’s Waitemata harbour'    Richard Gladwell    Click Here to view large photo

Collinson FX market Commentary: September 14 2012

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

Bernanke finally acted as promised/threatened to do!?

He has announced a open ended purchase of Mortgage Debt of $40 Billion/month to counter weak economic data especially unemployment. Bernanke downgraded forecasts for GDP growth in 2012 while revising 2013 and 2014 upwards. No doubt the far date forecasts will be reviewed lower if the economic stagnation continues. The QE3 has surprised many with the Presidential elections around the corner as this could be construed as partisan especially since Romney has expressed support for a strong Dollar and the pink slip for Bernanke!

Equity markets broke through technical levels testing 2007 highs on a sugar boost. Economic conditions are slowing with a recession gripping Europe and impacting Asia and the US so this is hardly good news. The EUR rallied to test the 1.3000 levels with the GBP reaching 1.6150. Commodities surged with the news as the USD is undermined.

The associated currencies benfit with the breaking AUD 1.0500 and the KIWI testing 0.8300. Bernanke denies inflationary pressures due to the lack of growth but long term this will be the genie released from the bottle.

The strength of the once mighty Dollar now relies on a Republican victory in November and the dismissal of Bernanke and fiscal responsibility from the Government!

Image of the Day Triple Olympic medalist Jochen Schümann (left) - 5.5m IC World Championship 2012 (5.5 was the Olympic 3 man keelboat, being dropped in favour of the Soling, which was dropped in turn and not replaced) -  Peter Kähl   Click Here to view large photo


Collinson FX market Commentary: September 13 2012

Little action ahead of the FOMC meeting tonight with markets stalled.

In Europe Germany approved the ESM bail-out package giving the green light to Super-Mario! Economic indicators point to recession with the added threat of rising inflation which makes for a nasty recipe for disaster.

The EUR continued to gain with risk appetite to 1.2900 and the GBP 1.6100. The US awaits the FOMC statement tonight and reacts to their ambassador to Libya being killed.

This will be a test for Obama as the elections draw closer and the people will expect more than an apology. Risk appetite pushed the AUD to break 1.0500 but dipped as markets flatline.

The KIWI threatens 0.8200 and these levels are technical highs which may prove to be too big a mountain to conquer.

Collinson FX market Commentary: September 12 2012

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=101994

5:56 AM Fri 14 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:

12 Sep 2012  Collinson FX Market Commentary: September 12, 2012 - Bad news is good?
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



















































America's Cup: Challenger calls Competitor Meeting ahead of deadline *Feature by Richard Gladwell Sail-World.com/nz,
















New Classification Code for consultation released by the IPC
Clipper Round The World Yacht Race fleet heads for London
Volvo Ocean Race - Abu Dhabi and Team Alvimedi head for England
Rio 2016 in the sights of ISAF Youth Worlds 420 sailors
Exciting new International Audi Melges 20 Ranking System now in play
FISU World University Match Racing Championships - GBR women win gold
2014 Seiko 49er and 49erFX European Championship - Day 2
Volvo Ocean Race teams Abu Dhabi and Alvimedica leave Newport, RI
Half Ton Classics Cup - Champagne conditions on Day 2 + Video
ABYC Fourth of July Regatta - Snipes join the action
Volvo Cork Week - Three bullets for ballistic catapult
Nacra 17 Europeans - Besson and Riou lead the overall standings
Formula 16 World Championship - Aussies claim title in Newport
Vestas Sailrocket 3 - The journey beckons
Clipper Round the World - London to provide emotional heroes welcome
ISAF Youth Worlds - Italians to lead RS:X fleet in Tavira
Vestas Sailrocket 3 - Over the Horizon
Foiling Week - Italian Moth Championship - Final results
NYYC Race Week - Yachting history on display
Rescued sailors reach shore after dramatic ocean rescue
Half Ton Classics Cup: Swuzzlebubble out front on Day 1 + Video   
New York Yacht Club Race Week - Yachting history on display   
Volvo Cork Week - Thrilling conditions welcome international fleet   
Nacra 17 Europeans: Success for Italy's Bissaro and Sicouri   
America's Cup: 2017 venue short-list reduced to two Cities   
Formula Windsurfing Youth and Master Worlds overall   
49er and 49erFX Europeans: Pitfalls aplenty on day 1 + Video   
ISAF Youth Worlds - Laser Radial sailors look to join list of legends   
Coville soon to chase solo circumnavigation record in giant trimaran   
Fierce competition at the Meanline Fins Slalom Challenge   
Volvo Ocean Race - Team Brunel opt for experienced winner   
Bakewell-White supermaxi designed to take Transpac's Barn Door Trophy *Feature   
Crew rescued by navy patrol from J/111 racer after Mayday in storm   
Team Alvimedica practice in Newport, RI - Photos   
18 foot skiff European Championship (Open Europeans) - Final results   
Nacra 17 European Championships - No action on day 1   
ISAF Youth Worlds - 29er and SL16 sailors prepare for battle + Video   
Volvo Ocean Race: Eight new crew members named by teams   
Volvo Ocean Race: New additions to Spanish team announced   
2014 Cape Panwa Hotel Phuket Raceweek - Phuket Island is ready to host   


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