sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: May 23, 2013 - USD up - all else falls
Collinson FX Market Commentary: May 23, 2013 - USD up - all else falls


'Elliot 7 - 2013 Auckland Cup, Day 3'    Richard Gladwell ©    Click Here to view large photo

Collinson FX market Commentary: May 23, 2013

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

This is the new reality of markets where Bernanke controls their direction through Monetary policy. The markets ignored economic data and all movements through the week were geared on what Bernanke would say. Equities rose on the prospect of expected 'no change'.

The Dollar rose as confidence returns to the US market and Bond yields rose despite the record liquidity reflecting an appetite for return on investments. Commodities fell as a measure of the strong reserve currencies, as did associated currencies. This is the current state of market moves and the dependency upon the Fed. Earlier equities rose to record levels as the Fed released pre-prepared minutes indicating a 'premature withdrawal of QE would put the economic recovery at risk'. New records were hit and the Dollar remained steady!

Bernanke appeared and a couple of variations from the statement set the cat amongst the pigeons! His language introduced 'tapering' and 'step-down' of QE as employment recovery remains strong and sustained. There was mention of partial withdrawal as soon as June. The Dollar surged and equities crashed as fear spread across markets.

The EUR plunged from 1.2990 to 1.2830 and the GBP dropped 150 points! Monetary Policy now controls markets but Central Bankers fear the creep upwards of Bond Yields as the canary chirps away! A rebellion against Global QE is underway but remains a guerrilla movement at present! EU Leaders meet in Brussels to discuss subjects of weight and the dire state of the economic recession will dominate, with little in the way of answers and more in the way of photos! In the US, Weekly Mortgage Applications plunged 9.8% and Existing Home Sales missed expectations rising only 0.6%.

Economic fundamentals are improving slowly in the US and requires further QE, although the size of the Fed's Balance Sheets is the largest on record and scares the hell out of the Central Bankers. The commodity currencies reacted to the markets accordingly, with the AUD falling from 0.9820 to 0.9680, initially ignoring the collapse in local Consumer Confidence.

The NZD also suffered trading just under 0.8200 until the Dollar rally. The fallout sees the KIWI now trading 0.8050 with little doubt regarding vulnerabilities due to moves by the Fed! Will the Fed temper QE or will the markets take Ben on?

TP52 V5 - 2013 Auckland Cup, Day 3 -  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: May 22, 2013
The Ben Bernanke funded equity rally continued to march relentlessly on the back QE Infinity cloud. St Louis Fed's President, James Bullard, signalled that QE will continue to boost growth that has been slower than expected.

The Economic fundamentals are weak and thus Monetary Policy is being used to stimulate the economy. This has become a global phenomena with the ECB and Bank of Japan employing the same tactics. Monetary largesse has now spread to the stronger economies of emerging nations and commodity driven ones, such as Australia and NZ, as they combat 'currency wars'.

The trade exposed nations such as, NZ and Australia, have been hit hard by record currency rises for extended periods and now have resorted to tactics to reverse these inequities. The trend is turning and the advantage the USD, EUR and JPY have had is coming to an end. This will not assist export driven recoveries but the strength of the USD, despite QE, is on the rise. Bond yields have turned and equities are looking overbought. A correction in bubbles seems likely.

The EUR is trading around 1.2900 and the GBP 1.5275 reflecting the dire state of the EC.

Commodities have been on the decline with flagging Asian demand and a stronger Dollar but the recent declines have stabilised with the AUD 0.9825 and the KIWI 0.8175.

The rapid recent declines have been no surprise and long overdue.

NZ Budgetry conditions seem to be on the improve as the Government employs steady Fiscal rectitude unlike the record Budget blowouts across the Tasman. Treasury seems unable to read the progress of the economy with record misreads resulting record budget blow-outs year upon year!

The Labor Government have been quick to spend over estimated revenues resulting in a structural crises which should result in their removal from office due to incompetence. The Fed Minutes will be released tonight along with comments from 'the Ben Bernanke' which should drive equity, commodity and currency markets.

Young 88 - Auckland Cup Day2 - 2013 Auckland Cup, Day 2 -  Richard Gladwell_©   Click Here to view large photo


Collinson FX market Commentary: May 21, 2013
Markets took a breather from the boisterous rallies we saw in Equities and the Dollar last week. The 'Big Dollar' took a breather and allowed commodities to rebound along with the currencies.

The AUD moved back to around 0.9800 and the KIWI to 0.8175 supported by the commodity gains and the improved risk scenario. The EUR also regained 1.2900 and the GBP 1.5275 with liquidity flooded markets providing credit and the economic news thin. US equities were flat after the surge from last week with little data out to influence directional pulls.

The markets needs little to trigger further gains in equities as investor search for yield in the frenzied equity bubble. US markets will look closely as economic data releases this week while the political junkies are consumed by the scandals enveloping the Obama administration.

Central banks will be watched closely this week, as will the Housing Sector data out in the US.

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=109755

11:35 AM Thu 23 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:

22 May 2013  Collinson FX Market Commentary: May 22, 2013 - Recovery for ANZAC?
17 May 2013  Collinson FX Market Commentary: May 17, 2013 - AUD falls further
16 May 2013  Collinson FX Market Commentary: May 16, 2013 - Europe contracts USD up
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
MORE STORIES ...




News - USA and the World

Volvo Ocean Race 2014-15 CEO Knut Frostad talks (Part III) *Feature by Rob Kothe and the Sail-World team,








Audi Melges 20 World Championship - ‘Samba Pa Ti’ crowned champion by International Audi Melges 20 Class Association,










Audi Melges 20 World Championship - Final race to decide champion by International Audi Melges 20 Class Association,










Fort Lauderdale International Boat Show - 13 things to See and do by Fort Lauderdale International Boat Show,




Volvo Ocean Race: Update from Team Vestas Wind in images by Richard Gladwell/Sail-World.com/nz,








Audi Melges 20 World Championship - Classic Garda conditions on day 2 by International Audi Melges 20 Class Association,
























Audi Melges 20 World Championship - Alessandro Rombelli's 'STIG' leads by International Audi Melges 20 Class Association,


Volvo Ocean Race: Call of Duty comes first for Team Alvimedica
Audi Melges 20 World Championship - Day 1 images by Stefano Gattini
Helping boaters understand weather basics
PWA Alacati World Cup - Exciting finish on day 2
Match 40s find the surface again + Video
Audi Melges 20 World Championship - Day 1 images by Max Ranchi
Clagett Regatta names first Executive Director
Transatlantic Race - Fleet expanded for 2015 edition
IFDS World Championship overall
Anna Tunnicliffe: Alinghi finishes second - Extreme Sailing Series
2014 18' Skiff International Regatta - Day 2
2014 Audi Melges 20 World Championship - It's go time in Garda
2nd Annual Keith Dinsmoor Regatta September 13-14
Aldo Alessio Regatta - Three days of tight racing
PWA Alacati World Cup - First blood to Van Der Steen and Offringa
Oakcliff Sailing hosts the Nacra 17, 49er and 49erFX Nationals + Video
International 18ft Skiff Regatta underway on San Francisco Bay
Maxi Yacht Rolex Cup 2014 - Quality fleet for Maxi Classic
Sailing Champions League - which is Europe's best sailing club?
Weta fun at the Wine & Roses Regatta
Extreme Sailing Series: The Wave, Muscat claims victory on Cardiff Bay   
International 14 World Championships 2015: Not just for boys   
Rio de Janeiro achieves 50% treatment of sewage outflow *Feature   
2014 AWT Quatro Desert Showdown - Event memorable videos   
2014 18' Skiff Int Regatta: Day 1 at San Francisco - Reversal on beach   
Emirates Team NZ: Last race boost cannot save team from table bottom   
PWA Alacati World Cup - Furious slalom is upon us   
J/111 World Championships - The Winner is Shmokin Joe!   
J/24 US National Championship - Victory for Will Welles’ Cougar   
Extreme Sailing Series: View the Final Day's action - Replay   
NYYC Grandmasters Team Race - Reign continues for Noroton Yacht Club   
WSSR announces new World Record Around Britain and Ireland   
IFDS Worlds 2014 - Final day photos by Tim Wilkes   
2014 Detroit Cup - Morvan wins   
Newport Bucket Regatta 2014 -Images by George Bekris   
IFDS Worlds 2014 - Final report: USA qualifies for Rio 2016   
Extreme Sailing Series: Absent With-Out Leave – Ben Ainslie Racing   
2014 IFDS World Championship - New champions claim medals   
2014 IFDS World Championships - Sunday’s race images by Tim Wilkes   
Shark World Championships underway in Toronto   


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