sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: July 11, 2013 - Egypt oil rises
Collinson FX Market Commentary: July 11, 2013 - Egypt oil rises


'Crew overboard! Elliott 7’s - 2013 Auckland Cup, Day 3'    Richard Gladwell ©    Click Here to view large photo

Collinson FX market Commentary: July 11, 2013

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

The crises in Eqypt continues unabated which has hit Oil hard, now rising to over $106 which will have a negative impact on input costs and disposable income. Higher Oil prices act like a giant tax on the economy and hits all aspects from the Consumer to Manufacturing.

The only beneficiary is the energy sector with these companies able to improve margins, short term, and opens previously too expensive options. Equities drifted in the face of rising energy costs and with the Fed minutes release. The Fed minutes are expected to endorse the tapering process outlined by Bernanke as the economy slowly improves. The EUR continues to fall, now back to 1.2850, and the GBP 1.4925. Chinese demand is expected to fall with exports and imports dropping as the credit crunch impacts.

A dramatic fall in exports should push commodities lower but general economic confidence had boosted the AUD back towards .9200 before falling to 0.9120 and the KIWI to 0.7800. Vulnerabilities in demand and withdrawal of Central bank intervention spell danger for commodity currencies so be prepared.

The Fed has observed that several members endorse tapering, as Employment conditions continue to improve. The improving economic realities must overwhelm the reduction in QE for equities to perform. It is hard to see the global recovery gain much short term momentum.

Volvo Ocean Race winner, Mike Sanderson helmed Stratis in the Elliott 5.9 fleet (55) - 2013 Auckland Cup, Day 3 -  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: July 10, 2013
Equity markets continued the recent bull-run with sentiment on the improve as an acceptance of marginal tapering, which provides continued QE for the forseeable future. The shock will come when reality bites and Central Banks will realise the consequences of the record breaking monetary largesse! The EUR has drifted lower, despite the rising confidence, with the single currency falling below 1.2800.

The GBP fell to 1.4870, wiping out recent gains, after Manufacturing Production fell 2.9% and Industrial Production also down 2.3%. There is little good news out of Europe and Bond yields in the PIIGS nations are once again on the march. The IMF has again reviewed Global growth lower from 3.3 to 3.1%. The US growth has been downgraded from 1.9% to 1.7% and they have recommended continued QE. This is a terrible growth rate for the US but has failed to dampen the positive sentiment.

Equities are on the rise after Alcoa beat expectations opening the earnings season. Aluminium demand is improving and so are earnings expectations which has reinforced positive sentiments across the markets. It is hard to have faith in this rally considering the economic situation and the fiscal crises that faces most western countries which have been supported by record breaking monetary recklessness. Commodities found support with rising US confidence and the KIWI rallied to 0.7840 with rising credit card spending and Home Prices.

The AUD also found support from the markets despite weakening Business Conditions and Confidence. Business is struggling and these reports hit record lows reflecting the decline in investment in Mining. The AUD is again testing 0.9200 but this is externally driven and vulnerabilities remain!

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

Collinson FX market Commentary: July 9, 2013
Markets continued to feed off last weeks positive Jobs data from the US and equities continued to rally strongly. European markets fed of the US lead despite weaker German Industrial Production and falling EU Investor Confidence. Positive news from Greece and Portugal also added to confidence and the EUR stabilised at 1.2875 and the GBP 1.4960. US Markets continued to rally strongly with Alcoa kicking off the earnings season this week.

The stronger Jobs data and acceptance of controlled tapering from the Fed has added to confidence prevailing in the US economic recovery. This has allowed the safety play to settle the Dollar and Bond Yields have also calmed recent spikes. Commodities rebounded and so did the associated currencies with AUD rebounding to just over 0.9100 despite Job Ads falling and unemployment on the rise.

Domestic data is certainly secondary in cause/effect on the currency. Employment is set to deteriorate in line with recent economic domestic data. The KIWI also recovered from the lows to test 0.7800 with local House Sales and Prices flattening out. Central Banks will continue to dictate market direction although local data and US earnings will also have impact.


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=111823

1:50 PM Thu 11 Jul 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:

11 Jul 2013  Collinson FX Market Commentary: July 10, 2013 - Bull run continues
09 Jul 2013  Collinson FX Market Commentary: July 9, 2013 - Aussies rebounding
06 Jul 2013  Collinson FX Market Commentary: July 6, 2013 - ANZAC Ups and Downs
05 Jul 2013  Collinson FX Market Commentary: July 5, 2013 - Rally extends to Europe
05 Jul 2013  Collinson FX Market Commentary: July 4, 2013 - Egypt pushes Oil up
03 Jul 2013  Collinson FX Market Commentary: July 3, 2013 - Equities travel well
03 Jul 2013  Collinson FX Market Commentary: July 2, 2013 - US markets continue up
29 Jun 2013  Collinson FX Market Commentary: June 28, 2013 - NZ Confidence Up
27 Jun 2013  Collinson FX Market Commentary: June 27, 2013 - The Lucky Country?
25 Jun 2013  Collinson FX Market Commentary: June 25, 2013 - Roller coaster market
MORE STORIES ...




News - USA and the World





































Soling North American Championship concludes on Lake Erie by Canadian International Soling Association,






























Outteridge and Jensen – What doesn’t kill you makes you stronger
ISAF Sailing Worlds, Santander - Giles Scott wins Gold
Santander Worlds - 49ers Burling and Tuke clear ahead
ISAF Sailing Worlds – Live broadcast - Medal races
Starboard Hatteras Wave Jam day 5
WMRT Chicago Match Cup 2014 – GAC Pindar through to the semi-finals
Bart’s Bash 2014 at Royal Hong Kong Yacht Club in Victoria Harbour
Bart's Bash: First event in at Wakatere in New Zealand
ISAF Sailing Worlds Santander 2014 - AUS Laser and 470 Medals + video
2014 Patriot Regatta - U.S. Coast Guard team wins
2014 ISAF Sailing World Championships - Santander - Day 9 highlights
2014 Etchells North American Championship – Day 2
Chicago Match Cup - Top four tour teams tackle tomorrow in semi-finals
470 Men and Women Worlds - Champions decided in Santander
ISAF Sailing Worlds, Santander: 49er and Nacra 17 world titles claimed
ISAF Sailing Worlds - Caleb Paine through to Finn medal race + video
ISAF Worlds - 49er, 49erFX, Finn and Nacra 17 Rio 2016 spots taken
ISAF Sailing Worlds - 470 Women's medal race images by Thom Touw
ISAF Sailing Worlds, Santander: Scott all set to lift Finn world title
ISAF Sailing Worlds - 470 Men's medal race images by Thom Touw
ISAF Sailing Worlds, Santander - Aussies and Austrians claim 470 gold   
ISAF Sailing Worlds, Santander: 470 awards images by Sail-World.com   
ISAF Sailing Worlds, Santander - 470 medal race images by Jesus Renedo   
Annapolis-to-Newport Race - 'What to Expect' Seminar to take place   
Royal Cup Marina Ibiza - No racing on penultimate day   
Belcher takes record fifth 470 World Championship   
ISAF Sailing World Championships - Santander - Day 8 video highlights   
2014 Great Lakes Team Racing Championship about to set off   
2014 Etchells North American Championship - Day 1   
2014 U.S. Multihull Championship - Day 1   
2014 Chicago Match Cup - Repechage top four determined in final flight   
J/24 World Championship - 35th anniversary preview   
470 Men and Women Worlds - Santander medal race line-up confirmed   
ISAF Sailing Worlds, Santander - Day 8 images by Sail-World.com   
Royal Cup Marina Ibiza - Quantum Racing stumbles in coastal race   
ISAF Sailing Worlds, Santander - Americans ready for 470 medal races   
ISAF Sailing Worlds, Santander: Action ramps up with end zone in sight   
Big Boat Series - It's not the size, it's the length   
ISAF Sailing World Championships Santander - Double French RS:X gold   
ISAF Sailing Worlds, Santander - Day 8 images by Sailing Energy   


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