sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: June 8, 2012 - World up Europe tanks
Collinson FX Market Commentary: June 8, 2012 - World up Europe tanks

'Pic of the Day Porto Cervo, Loro Piana Superyacht Regatta 2012
Highland Fling'    Carlo Borlenghi ©

Collinson FX market Commentary: June 8, 2012

Market rallies continued globally despite the continuing storm overwhelming Spain and Europe. Fuel was added to the week-long rally by Chinese interest rate cuts. The intervention immediately sparked confidence despite the bad news from Europe.

Fitch downgraded Spain citing the double dip recession, crippling debt and the dire state of the Spanish Banks. Spanish bonds came off highs after the Chinese interest rate cuts and the hope of ECB intervention. The government have requested that the ECB intervene directly in the bank bailout thereby avoiding austerity restrictions associated with a Sovereign bailout.

The rally extended the US with Jobless claims falling and markets anticipating the Feds extension of monetary stimulus.

This has supported the EUR trading up to 1.2600 and the GBP testing 1.5600. Commodity currencies rallied with the AUD 0.9935 and the KIWI 0.7710 with the expectations of monetary intervention by the Fed. Immunity from the European crises must be temporary because of the very nature of the global economy epitomised by the Banking sector.

Merkel has proposed political and fiscal union as the solution and she is correct.

This cannot happen short term and is very unlikely to happen at all as the democratic citizenship would revolt against further central political power after recent experience.

Collinson FX market Commentary: June 7, 2012

A shock GDP growth number in Australia surprised pundits and markets and embraced recent rallies extending gains in risk assets. European debt crises stumbled on with the Spanish banks begging for a Governmental bailout who in turn requested the ECB directly fund the bailout.

The Germans will not agree to shared assumption of debt obligations so the ECB will be expected to act. President Draghi has placed resposibility squarely back in the politicians court. Markets rallied strongly as expectation of a political solution from the G20.

Risk appetite spiked and the EUR rose to 1.2550 and the GBP 1.5470. In the US equity markets extended gains with the prospect of further monetary stimulus from the Fed. The biege book revealed moderate growth in the economy and no real reason to panic.

The extension of 'operation twist' is likely and the maintenance of the extreme interest rate policy to remain. Central Bank intervention may cure short term liquidity problems with Banks but the underlying problems remain and grow.

This may be a correction on the correction or perhaps a bounce on the road to a bear market. Europe will likely determine market direction over the next few months.

Collinson FX market Commentary: June 6, 2012

Markets stabilised with little in the way of economic news or dramatic events from Europe as the G20 set to meet. Pre-G20 talks have discussed the European crises and the possible solutions including Eurobonds and Fiscal Union. Most EU leaders promote the Eurobond with shared responsibility for the overwhelming Sovereign debt.

Germany is unlikely to accept this without dramatic changes and fiscal union. The question is what price the Germans will demand? The EUR held at 1.2450 and the GBP 1.5370 with markets preparing for some form of QE and further dilution of the USD.

The AUD remained steady trading 0.9730 after the RBA cuts rates by 25 points and warned of 'risks of destabilising global growth environment' impacting China and the EU crises.

The Bank of Canada echoed this sentiment leaving interests rates at the record low of 1%.

The KIWI consolidated around 0.7550 building support. Equity markets in the US reflected the stabilisation of markets and commodities also eked out small gains. Markets await the Fed's reaction and the G20.


Collinson FX market Commentary: June 5, 2012

The flood of negative economic news continued with weak data from China, Europe and the U.S..The previous week broke technical levels and erased 2012 gains in equity markets. Currencies surprisingly resisted the moves with the EUR bouncing back to 1.2480 and the GBP 1.5375. This may be a dead cat bounce as technicals and fundamentals point the same way.

In China Non Manufacturing PMI fell from 56.1 to 55.2. In Europe Investment Confidence remained critically weak and PPI was flat. The U.S. Followed with Factory Orders falling 0.6% and the New York ISM contracting below 50.

Australian equity markets were hammered from the fallout from the U.S. Employment data over the weekend. Job advertisements fell and Company profits slipped a further 4%.

The AUD improved to 0.9725 following a consolidating USD. The KIWI held resistance levels and built back to 0.7570 but further upheavals in Europe are likely to test the all important 0.7500.

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=98171

1:52 AM Fri 8 Jun 2012GMT


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:

07 Jun 2012  Collinson FX Market Commentary: June 7, 2012 - Off to a bear market?
06 Jun 2012  Collinson FX Market Commentary: June 6, 2012 - No news = stablility
05 Jun 2012  Collinson FX Market Commentary: June 5, 2012 - Currency against trend
03 Jun 2012  Collinson FX Market Commentary: June 1, 2012 - Equity markets crash
31 May 2012  Collinson FX Market Commentary: 31 May 2012 - Spanish banks exposed
29 May 2012  Collinson FX Market Commentary: 29 May 2012 - ANZAC dollars lift
25 May 2012  Collinson FX Market Commentary: 25 May 2012 - ANZAC Banks unconvincing
24 May 2012  Collinson FX Market Commentary: 24 May 2012 - Dramatic recovery in US
23 May 2012  Collinson FX Market Commentary: 23 May 2012 - The European oxymoron
22 May 2012  Collinson FX Market Commentary: 22 May 2012 - Markets rebound
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 VIR US
LocalAds   DE  ES  FR  IT