sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: April 30, 2013 - Euro defies gravity
Collinson FX Market Commentary: April 30, 2013 - Euro defies gravity


'Getting a grip - 2013 Auckland Cup, Day 3'    Richard Gladwell ©    Click Here to view large photo

Collinson FX market Commentary: April 30, 2013

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

Equity markets continued the rally in Equities, despite the slew of weak economic data, emanating from a positive European rally. Expectations are that the ECB will cut rates to 0.5% and in addition launch in to a round of QE and an aggressive debt monitisation program. The 'currency wars' have resulted in a recovery in US and Japanese equities and the ECB are considering throwing caution to the wind.

Debt monitisation was a pre-GFC no-no for all Central Banks, as the purchase of your own Government debt to fund ever increasing deficits and debt was seen as economically corrupt. Central Bankers crossed the line and have now abandoned many of the principles of Monetary Policy previously sacrosanct.

The news from Europe should have resulted in further erosion of the value of the single currency but had the opposite effect. The EUR rallied to 1.3100, reacting to the rise in risk appetite and boosted by an increase in commodity demand. The GBP held steady at 1.5480 and all looks positive across Europe with a Government in Italy and the new pro-growth anti-austerity sentiment prevailing.

Forget the critical deficits driving debt to unserviceable levels as interest rates flooded with liquidity should allow this gross delusion to continue. US Equity markets rallied on the back of EU prospects with the S&P hitting new highs as the rally continues. Pending Home Sales rose 1.5% and this was a further sign from the market Gods to pile in!

The Dallas Fed Activity Index plunged 15.6% but this was largely ignored as Bernanke drives investment decisions in search of yield building bubbles. Economic fundamentals have all pointed in the opposite direction and May could be the reality check the market finally needs.

The AUD bounced on further rises in demand for commodities and traded 1.0330 with the KIWI continuing to outperform at 0.8540. Scary times with frenzied yield investment and unprecedented technical levels.

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

Collinson FX market Commentary: April 29, 2013

US GDP data frightened many equity investors as markets fell flat. First quarter growth in the US was 0.4% and an annualised rate of 2.5% below the expected 3%. The news was not surprising as economic fundamentals have been weak all year despite the much vaunted 'housing recovery!'

Data will be out this coming week placing some doubt on market forecasts in the leading indicator that is housing.

This coming week will look closely at this and pay close attention to the Fed's rate decision and the ECB, who are expected to cut rates as Europe continues to battle recession. The EUR held above 1.3000 and the GBP looks set to test 1.5500! Risk appetite has fallen recently despite the continuing flood of liquidity being pumped into the US, Japan and the EC.

The major employment reports will also be released in the US which will probably confirm the stagnation in the worlds largest economy. Commodities remain bid supporting the AUD at 1.0275 but this will be vulnerable to any major equity correction in May!.

The KIWI continues to gain support and has become a market darling trading up around the 0.8500 but this too will suffer uncertainty in Equities and risk 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=109006

7:58 PM Tue 30 Apr 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:

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
24 Apr 2013  Collinson FX Market Commentary: April 24, 2013 - Twitter hack strikes
23 Apr 2013  Collinson FX Market Commentary: April 23, 2013 - Bulls try hard
21 Apr 2013  Collinson FX Market Commentary: April 20, 2013 - Week closes quietly
19 Apr 2013  Collinson FX Market Commentary: April 19, 2013 - Equities tumble more
18 Apr 2013  Collinson FX Market Commentary: April 18, 2013 - Risk appetite wanes
17 Apr 2013  Collinson FX Market Commentary: April 17, 2013 - Bomb hits markets
12 Apr 2013  Collinson FX Market Commentary: April 12, 2013 - KIWI gains more
11 Apr 2013  Collinson FX Market Commentary: April 11, 2013 - Equity bubble expands
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,


SAP 505 World Championship - Holt and Woelfel on top
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   


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