sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: August 24, 2013 - Back to the Future
Collinson FX Market Commentary: August 24, 2013 - Back to the Future


'Josh Junior in the Finn - Day 4, Oceanbridge Sail Auckland 2013'    Richard Gladwell ©    Click Here to view large photo

Collinson FX market Commentary: August 24, 2013

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

Back to the future! A surprisingly bad number in US New Home Sales has injected the equity markets with confidence.

New Home Sales plunged 13.4% and the leading indicator triggered a rally in equities as the bad news reduced the liklihood of tapering from the Fed. The irony of 'bad news being good' should reflect the parlous state of the US economy and the crises that is looming. Fed Presidents met at Jackson Hole and were certainly not in concensus on the prospects of tapering.

The recovery in equities is temporary, at best, as economic conditions remain dire. The USD reflected the status quo with the EUR trading 1.3375 and the GBP 1.5560.

Risk currencies tread water with the AUD 0.9020 and the KIWI battling 0.7800. The next week will look at growth in the US and the important Case-Shiller Home Price Index.

- Day 4, Oceanbridge Sail Auckland 2013 -  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: August 23, 2013

US Equity markets were in turmoil after the NASDAQ fell over! The computer driven, Tech-stock market, was closed mid-way through the days trade and hopes were that they could open prior to the close. Equities were higher in the DOW and S&P after some serious losses emanating from the pending tapering from the Fed. Momentum was gained from positive economic news from Asia and Europe.

The Chinese Flash Manufacturing PMI broke above 50 and EU PMI numbers also gained, renewing confidence in the global economic recovery. Energy prices rose and Metals also gained, giving some hope to the recently recalcitrant AUD. The commodity driven currency has reflected weakening prices and a resurgent USD but has dug in it's toes around the 0.9000 level.

This can not be said for the country KIWI cousin which has collapsed to 0.7810 after some interference from the RBNZ, falling Agriculture prices and a stronger reserve measure. This rebound in markets is probably temporary, as recent trends are lower due to tapering adjustments in US markets.

420 heads upwind in the white water - Day 4, Oceanbridge Sail Auckland 2013  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: August 22, 2013

Equity markets remained weaker in the lead up to the Fed minutes release in the US before the close. The minutes revealed that the members all agreed with the reduction of QE later this year assuming the economy continues to improve. Some members advocated an even earlier reduction in stimulus.

This was in line with market expectations and so equities rebounded strongly on the 'buy the rumour...' trade. The news is still not great for equities and bonds and the digestion of the minutes should result in further downside. The reduction of QE will reinvigorate the Dollar and this was reflected in the EUR which fell to 1.3350 although the Pounds recent strength held, trading 1.5645.

NZ Credit card spending increased 4.7% but the downward pressure from RBNZ antics and a rising USD pushed the KIWI down to 0.7850.

The AUD also has been impacted by the rally in the reserve currency breaking the big figure of 0.9000! Speculation over the effect of economic data on Central Bank action will remain the driver of equity, bonds and currency markets.

Womens 49er FX - Day 4, Oceanbridge Sail Auckland 2013  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: August 21, 2013
Asian equity markets tumbled after concerns over the end of the Central Bank bubble in US equities as bonds continued to sound shrill warnings. The Sell-off across Asia was stabilised in Europe and turned to the positive by the time US markets opened. There were no major economic data releases in the US which meant reduced speculation on the Fed's 'tapering' program.

Good news has recently been a negative, as it supports the tapering in Central bank monetary policy and bad news was treated as 'bad news' pushing equities lower and bond yields higher! This is a reversal of the same inversed phenomena that caused recent rallies!? Go figure!? The Chicago National Activity Index dropped, but in line with expectations, so markets will eagerly await tonight Housing data release in the US. The EUR regained 1.3400 and the GBP continued to book gains, trading 1.5675.

The AUD suffered during domestic trade after the RBA Minutes confirmed the parlous state of economic and budgetary affairs but will resist further cuts before the election. The AUD looked to test the big, big figure of 0.9000 but rebounded back to 0.9080 as US markets improved. The KIWI traded below 0.8000 after the RBNZ acted to impose restriction on mortgage ratios on banks.

The intervention is a vain attempt to control the booming property market in Auckland while not raising rates and thus the NZD. Unintended consequences! Look for further downward pressures in US Equities and Bonds as tapering approaches and this will drive markets!

Denmark 49er FX - Day 4, Oceanbridge Sail Auckland 2013  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: August 20, 2013
The momentum of the last week continues with further pressure on equities. US markets were unable to break the inure that has siezed stock markets due to the threat of reduced stimulus. It is hard to believe that markets are so inflated and swamped in liquidity, but here we are!

The Dollar remains relatively strong due to similarly adopted Monetary policy by global counterparts. The ECB has followed the monetary expansionism and this has reduced the impact of the USD which trades 1.3333. The Bank of England has also participated in monetary largesse, due to insurmountable debt and deficit, with growth the only redeemable option. Fiscal rectitiude is the solution and the UK has invested with returns reflected in the GBP, which has moved back to 1.5650.

Bernanke will act to preserve what little historical relevance he may have but it will be too little too late! Greenspan is blamed for the same monetary vandalism that Bernanke will be. They have overplayed their hands due to Governmental incompetence and fiscal ineptitude. The experiment with the left has failed miserably and the people will recognise that emotional social wish lists never avail themselves to reality. Social progress only comes through growth and conservative economic budgeting.

Australia is learning this hard lesson with an exponential growth in debt and an uncontrolled budgetary abuse. Interest on debt has become a major component of Governmental expenditure and the budget has now become structurally broken. It appears the people will right the wrong and this may be reflected in the currency which has recovered to 0.9110 after hitting 0.9200 in yesterdays trade.

The KIWI has improved back to 0.8070, after earlier hitting 0.8100, with economic conditions slowly improving. Commodities dipped due to demand pressure which has been hit by international markets. Look to further growth prospects globally to determine central bank policy and thus equity, commodity and currency 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=113600

10:33 PM Sat 24 Aug 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:

24 Aug 2013  Collinson FX Market Commentary: August 23, 2013 - NASDAQ turmoil
23 Aug 2013  Collinson FX Market Commentary: August 22, 2013 - Kiwi drops to .78
21 Aug 2013  Collinson FX Market Commentary: August 21, 2013 - Asian tumble
20 Aug 2013  Collinson FX Market Commentary: August 20, 2013 - Momentum continues
16 Aug 2013  Collinson FX Market Commentary: August 16, 2013 - US Recovery underway
16 Aug 2013  Collinson FX Market Commentary: August 15, 2013 - The canary tweets
15 Aug 2013  Collinson FX Market Commentary: August 14, 2013 - US up others slide
13 Aug 2013  Collinson FX Market Commentary: August 13, 2013 - AUD drops KIWI holds
10 Aug 2013  Collinson FX Market Commentary: August 10, 2013 - AUD shoots high
09 Aug 2013  Collinson FX Market Commentary: August 9, 2013 - Kiwi close to break
MORE STORIES ...




News - USA and the World



Big Boat Series - It's not the size, it's the length by Erik Simonson, Pressure-Drop.US,


























470 Men and Women Worlds - Champs take over leaderboard by 470 International Association Class,






































ISAF Sailing World Championships - Watch medal races live here
Hobie 16 Open North American Championships and Pan Am Games qualifier
ISAF Sailing World Championship - Videos from Santander
ISAF Sailing Worlds: Buckingham into Medal Race, 470's stay consistent
470 Men and Women Worlds - Vadlau and Ogar into pole position
2014 Chicago Match Cup - Defending champion on top
ISAF Sailing Worlds, Santander - Strong competition for RS:X fleets
ISAF Sailing Worlds, Santander - Big breeze on day 6 + Video
ISAF Sailing Worlds, Santander - Buckingham into Laser Medal Race
U.S. Multihull Championship - Hobie Alter Trophy to be decided
ISAF Sailing Worlds - The kind of form most sailors only dream about
Royal Cup Marina Ibiza - Quantum Racing ahead of target
ISAF Worlds Santander - 19 Rio 2016 Laser Radial spots awarded
Santander 2014 ISAF Worlds - 21 broadcasters to take live coverage
Rolex Swan Cup - Looking forward to the next 30 years
America’s Cup: The Future is foiling – AC45s to be modified
Volvo Ocean Race: Win a stopover trip by designing an ECsix T-Shirt
Red Bull 49erFX: On the eve of the Worlds in Santander
America's Cup: Ben Ainslie Racing launches partnership with Yamaha
2014 Chicago Match Cup - Starts tomorrow
Rio 2016 Daylight the issue for Olympic sailing regatta   
ISAF Sailing World Championships - USA 470's and Lasers battle at top   
ISAF Sailing World Championships - Santander - Day 5 video highlights   
ISAF Sailing World Championships - Santander images by Jesús Renedo   
PWA Cold Hawaii World Cup - No action on day 2   
470 Men and Women Worlds - Game on for Olympic Qualification   
ISAF Sailing World Championships: Finns off to slow start in Santander   
ISAF Sailing World Championships - Seesaw Day 5 in Santander + Video   
ISAF Sailing World Championships - 470 sailors shine in Santander   
Royal Cup Marina Ibiza - Kiwi Ray Davies returns to TP52 fleet   
Starboard Hatteras Wave Jam - No windsurfing action on day 1   
A complete recap of the most successful Melges 20 World Championship   
Rolex Big Boat Series - Prizegiving images by Chuck Lantz   
ISAF Santander - Upwards path for Austrian women's 470 crew + video   
18ft skiffs: Carnage compilation from the glory days of the Grand Prix   
ISAF Worlds: Video from the British Sailing Team   
Bart's Bash expected to set new records this weekend   
PWA Cold Hawaii World Cup - Marcilio Browne wins Super Session   
470 Men and Women World Championships - Racing abandoned on day 2   
ISAF Sailing World Championships - Day 4 images from Santander   


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