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

The first annual WetaFresh is a big success by Tim Wieringa, Muskegon, MI














Techno 293 Worlds - France and Italy claim titles by International Windsurfing Association,














420 World Championship - Singapore and Spain out front by 420 International Class Association,






























Lightning strikes cut short CFJ Nationals by Andy Kopetzky, Santa Monica Bay








Sevenstar Round Britain and Ireland Race sets off August 10th
PWA Fuerteventura Grand Slam - Antoine Albeau victorious on day 5
Snipe Western Hemisphere and Orient Championship headed for San Diego
WPA Championships - Kids race divisions offered
New Clever Pig launched by US Sailing
America's Cup: Group agrees to co-operate in London Meeting
Copa del Rey Mapfre - Build-up reveals some remarkable enthusiasm
Marblehead NOOD Regatta - Images by Leighton O'Connor
America's Cup: Two AC72 skippers discuss Foiling Moths and the Cup
RS Feva World Championship - Brilliant sailing on day 2
America's Cup: Alameda makes overtures on Venue hosting for San Fran *Feature
Cape Panwa Hotel Phuket Race Week 2014 - Relishing a challenge
Edgartown Race Weekend - BBBR and Round-the-Island Race winners named
Etchells Invitational Cup - Aussies take early lead in Cowes
PWA Fuerteventura Grand Slam - Antoine Albeau strikes back on day 4
Aquece Rio – International Sailing Regatta - All set for test event
ISAF World Sailing Rankings for 28 July 2014
29er World Championship - All set in Kingston
ORC World Championship - Third Course area opens for huge fleet
Day one of the Allen RS Feva World Championships
Anna Tunnicliffe: Final two days of the 2014 Reebok CrossFit Games   
Joachim Aschenbrenner takes gold at ISAF Youth Match Race Worlds 2014   
Maxi Soh scores double wins in CMRC Summer Doubleheader   
29er World Championship opening ceremonies in Confederation Park   
PWA Fuerteventura Grand Slam - Action resumes on day 3   
Land Rover Sydney Gold Coast Yacht Race Start 2014 VIDEO   
Laser Radial Men’s World Championship 2014- Final day   
2014 Pacific Cup - Scarlet Runner wins   
Gladwell's Line: America's Cup - Joint Statement is a curious note *Feature   
ISAF Youth Match Racing World Champ - Top four battle it out for final   
BIC Techno 293 Worlds 2014 - Day 6   
PWA Fuerteventura Grand Slam - Wind teases competitors on day 2   
Women’s Match Race Golfe du Morbihan - Action-packed day of racing   
Herreshoff Marine Museum announces successful fundraising campaign   
Brewin Dolphin Commodores' Cup - The most comprehensive victory yet   
Anna Tunnicliffe fourth at mid-point of 2014 Reebok CrossFit Games   
2014 29er North American Open Championship - Australians win   
INSA Sabot II Invitational Regatta - Erik Hou claims victory   
CMRC Summer Invitational Series - Maxi Soh wins Doubleheader A event   
International Moth World Championships - Nathan Outteridge wins   


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