sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: May 16, 2013 - Europe contracts USD up
Collinson FX Market Commentary: May 16, 2013 - Europe contracts USD up


'240313AucklandRegattaDay3 (46) - 2013 Auckland Cup, Day 3'    Richard Gladwell ©    Click Here to view large photo

Collinson FX market Commentary: May 16, 2013

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

Stocks were flat-lining in the US after some further weak economic data from Europe and domestically. In Europe, French GDP continued to contract and was joined by the engine room of Europe, namely Germany. Overall EU GDP contracted 0.2% for the Quarter and 1% for the year.

This extends the technical recession and shows the dire straights the single market is in. In the US the Dollar has continued to rise bucking the long term recovery trends. The initial reasoning was due to the economic recovery America was undergoing. Economic data points to a slow recovery with Industrial and Manufacturing Production both contracting as did the Empire State Manufacturing report.

Housing has been mixed but it is the rise in yields that may be the real canary in the mineshaft!? Rising yields, despite Bernanke endless ocean of liquidity, should send major warning signals to risk markets....especially equities.

The EUR continued to fall against the Dollar trading 1.2870 and the GBP 1.5215. Commodities are drifting in the face of the Dollar rise and have continued to impact the associated currencies. The AUD is now trading 0.9875 and the KIWI 0.8220. We are breaking some decent downside technical levels so look for triggers to see a major turn in risk sentiment.

Elliott 7’s - 2013 Auckland Cup, Day 3  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: May 15, 2013

Markets continued the bull run which seems to be mindless considering economic fundamentals. It appears that the Fed has overwhelmed all sensibilities by flooding the markets with ever increasing liquidity but there is a limit.

The Fed is fast becoming 'too big to fail'. The EUR fell back to 1.2930 and the GBP 1.5225. Commodities took a hit with Chinese demand flagging and data so good that even the believers starting to doubt. The statistics defy logic with the uniformity and should be questioned because of the source.

The peripheral currencies continue to suffer the risk aversion trade with the AUD now below 0.9900 and the KIWI 0.8180.

There is more downside available as the Dollar surges from a risk prospective rather than the vaunted economic recovery. Turmoil will spread to equities.

Elliott 5.9s- 2013 Auckland Cup, Day 3  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: May 14, 2013
Rumours swirled in the US, that the massive Bond Buying program the Fed has blessed the markets with, may be coming to an end. The Fed is said to be dipping their collective toe in to the water to test the temperature. This is a signal of moves to cut the $85 Billion monthly Bond Buying that has been referred to as QE Infinity.

The reason Bernanke launched the continuous stimulus package was the dire state of the US economy and the recent improvement may tempt the Reserve Bank to return to reality. The problem is that the economy has stabilised but there are more challenges ahead, especially from Europe. The Dollar continued to rise after the G7 endorced the Bank of Japans QE program which has seen the JPY hit 102.00 and charts say may see a move to 105!.

The EUR was steady at 1.2975 and the GBP below 1.5300. Hard commodities drifted lower with the rising Dollar, which has pushed the associated currencies back.

The AUD has well and truely breached parity, trading 0.9950 and the KIWI slipped to 0.8240 despite House Sales rising 25% tempered by a flattening in prices. In the US Retail Sales rose 0.1%, beating expectations, which has improved the GDP growth outlook. Chinese Industrial Production grew 9.4% and Retail Sales rose 12.5% continuing a trend of bullish, consistant and doubtful economic data releases.

The trends are positive but equities have exploded because of Monetary policy and any contraction will result in a massive correction which will hit risk appetite hard! Mid-May

MRX Action - 2013 Auckland Cup, Day 3  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: May 13, 2013

US Equities closed on a new record high compliments of massive liquidity flooding markets looking for a return. The US Dollar surged again as a result of relative confidence in the US recovery vis-a-vis the other Economic Zones.

The EUR slipped below the psychological 1.3000 and the GBP floundered to 1.5350. Commodities took a bath as a result of the surge in the USD and perhaps a reflection of softening demand.

Consequently the associated currencies suffered with the AUD breaking parity and the KIWI under 0.8300. May rolls on without any adversity in the Equity markets with New Yorkers declining the opportunity for a holiday!

A quiet week in terms of economic data will be followed by a very busy week coming. Growth numbers in the EU and Inflationary data will be a guide to the state of any recovery in the 'submerging nations'!

The US will have a close look at the vital Housing sector and the consumer with Retail Sales releases. A very busy week so be prepared for some volatility especially with the currencies perched on some very suspect technical levels!

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=109522

6:17 PM Wed 15 May 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:

15 May 2013  Collinson FX Market Commentary: May 15, 2013 - The mindless Bulls
14 May 2013  Collinson FX Market Commentary: May 14, 2013 - AUD breaks the ice
13 May 2013  Collinson FX Market Commentary: May13, 2013 - ANZACs take a bath
10 May 2013  Collinson FX Market Commentary: May10, 2013 - USD on the rise
09 May 2013  Collinson FX Market Commentary: May 9, 2013 - Oz down KIWI up
08 May 2013  Collinson FX Market Commentary: May 8, 2013 - RBA cuts to 1959/60 rate
07 May 2013  Collinson FX Market Commentary: May 7, 2013 - KIWI catching up
06 May 2013  Collinson FX Market Commentary: May 6, 2013 - Oz interest rate cut?
03 May 2013  Collinson FX Market Commentary: May 3, 2013 - Bulls on the handlebars
02 May 2013  Collinson FX Market Commentary: May 2, 2013 - Unimpressive largesse
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,


































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   
PWA Awaza World Cup - Cyril Moussilmani and Delphine Cousin on top   
Foiling Week - Moth Class Italian Open Championship Day 2   
America's Cup: Luna Rossa foiling in AC45s at their Italian base   
Star World Championship - Germans claim dramatic win in Malcesine   
PWA Awaza World Cup - Down to the wire in Turkmenistan   
Route Halifax Saint-Pierre - Off to France!   
Nacra 17 Europeans - La Grande Motte back in Olympic classes arena   
Stena Match Cup Sweden - Hansen hat trick in Marstrand + Video   
Route Halifax Saint-Pierre Race keeps an eye on Arthur   


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