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



































































CMRC Summer Invitational Series - Doubleheader events start tomorrow
BIC Techno 293 Worlds 2014 - Day 3
Sailing through STEM Night at California YC
Six Metre European Championship - High temps and little wind on day 3
Women’s Match Race Golfe du Morbihan - Light wind opener in Vannes
International Moth Worlds: Rashley ahead as Aussies close in
Brewin Dolphin Commodores' Cup - Unsatisfactory conditions on day 4
ISAF Youth Match Racing Worlds - American unbeatable on day 1
RS Feva World Championships - All set at Yacht Club de Carnac
ISAF Rolex World Sailor of the Year Awards - Nominations now open
BIC Techno 293 Worlds - Steady winds on day 2 + Video
29er North American Open Championship - Qualifying series wraps up
Opening ceremony O'pen Bic World Cup, Travemunde Week, Germany
Six Metre Europeans - Wind fails to make an appearance on day 2
Edgartown Race Weekend - Let the sailing (and good times) begin
ISAF Youth Match Racing World Championship - Action commences July 23
International Moth Worlds - Mothballed on day 4 + Video
Brewin Dolphin Commodores' Cup - Ireland remains out front
Spirits high as Team Alvimedica completes Transatlantic crossing
Gladwell's Line: A change of direction needed in the America's Cup *Feature
29er North American Championship - Day 1 in Kingston   
Red Bull 49erFX: First look at the Olympic sailing venue at Rio   
Fuerteventura Kiteboarding Grand Slam - Classic conditions on day 3   
NYYC Race Week Part II images by Rolex/Daniel Forster   
Drowning or electric shock? What you need to know to help save a life   
BIC Techno 293 Worlds 2014 - Day 1   
Six Metre European Championship - Blazing sunshine on opening day   
National Sailing Hall of Fame to present Lifetime Achievement Award   
Brewin Dolphin Commodores' Cup - Tactical evening ahead for the fleet   
International Moth Worlds: Greenhalgh and Rashley tied at the top   
PWA Pozo World Cup - Fantastic finale determines winners   
Six Metre Class British Open Championship - Llanoria and Valhalla win   
Anna Tunnicliffe set to compete at the CrossFit Games   
America's Cup: Oracle Team USA holds foiling camp at Wangi SC   
Volvo Ocean Race: Abu Dhabi OR completes double Atlantic crossing   
Volvo Ocean Race: Team SCA has a 'pull through day' off the Canaries   
No tiller sailing - how to steer using just the sails + Video   
International Moth Worlds: Three bullets in a row for Greenhalgh   
U.S. Junior Women’s Singlehanded Championship - Sophia Reineke wins   
BIC Techno 293 Worlds 2014 - Day 0 Opening   


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