Sail-World.com : Collinson FX Market Commentary: 29 May 2012 - ANZAC dollars lift
Collinson FX Market Commentary: 29 May 2012 - ANZAC dollars lift
Collinson FX market Commentary: 29 May 2012
Markets across Europe and the US were closed for a long weekend so there was very thin volume in the remaining trading markets. In China, the Leading Index, drifted lower fueling belief in the slowing growth in China and across the global economy.
In Europe, markets tried to decipher the growing crises evolving in Spain. The Spanish Government has indicated it may attempt to use Sovereign Debt funds to bailout the Spanish Banks. Bankia is the fourth largest bank and has been nationalised because of exposure to toxic residential mortgage debt. It appears that others will follow and the capacity of the Government to provide the necessary funds is doubtful.
In some capacity, the ECB must print money and support the Spanish Government and the Banks in direct contravention of EU law! The EUR held above the 1.2500 mark and the GBP 1.5680.
US Markets were closed for the Memorial Day long weekend so now all attention will turn to the markets reopening tonight.
The Commodity currencies regained some ground with reports from Greece that the Pro-Bailout parties look to be in the ascendency. Support for Greek membership of the EU is growing, as realisation dawns on their prospects without the EU bailout funds.
The AUD rallied to 0.9850 and the KIWI regained 0.7600. Europe will continue to dominate market direction as Spanish Bonds again reach critical tipping levels.
Collinson FX market Commentary: 28 May 2012
Markets closed the week a little shell shocked after more turmoil in Europe.
The Debt/Deficit crises spread to Spain with one of the largest Banks (Bankia) requesting a $23 Billion Government Bailout.
S&P added to the mess by downgrading further Spanish Banks. This crises may well spread across other European Banks with runs likely.
Plans are now afoot to ring-fence the spread of contagion and prepare for the exit of the Greeks. The precedent would then be set and it will be who stays and who goes.
The single currency dipped below 1.2500 looking extremely vulnerable with Greek elections not due until June 17th.
The instability has shattered market confidence and now economic data is starting to reflect this. The commodity currencies stabilised just above lows with the KIWI 0.7520 and the AUD 0.9750.
The new week will focus on Europe and the Banks and a close look at US economic reports. Housing and Employment will be key. The start will be slow with US markets closed for the Memorial Day long Weekend.
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
8:36 PM Mon 28 May 2012GMT
Click here for printer friendly version
Click here to send us feedback or comments about this story.
Click for further information on
MORE STORIES ...
2011 Collinson & Co
Related News Stories:
Our Advertisers are committed to our sport, please support them!
This site and its contents are © Copyright TetraMedia Pty. Ltd and/or the original author, photographer etc. All Rights Reserved.
Photographs are copyright by law. If you wish to use or buy a photograph you must contact the photographer directly (there is a hyperlink in most cases to their website, or do a Google search.) with your request.
Please do not contact
as we cannot give permission for use of other photographer’s images.
Only if the photographer named on the image is Sail-world.com, Powerboat-world.com, Marinebusiness-world.com or NZBoating-World.com.
Ph: +61 2 8006 1873
or complete our
[ Banner Advertising Specification
[Bot Archive ]
Customised news feeds -Marine Industry companies, Clubs and Associations have their own customised version of our news feed on their website.