sail-world.com
 
 
News Home Video Gallery Photo Gallery
Sail-World.com : Collinson FX Market Commentary: June 20, 2012 - Big 8 looms for KIWI
Collinson FX Market Commentary: June 20, 2012 - Big 8 looms for KIWI

'Pic of the Day - Team Korea - latest America’s Cup 34 entry'    Gilles Martin-Raget/www.americascup.com©    Click Here to view large photo

Collinson FX market Commentary: June 20, 2012

The Fed began their two day meeting today and all expectations are for monetary stimulus in the form of an extension to 'Operation Twist'. The rally built on these expectations has been strong suggesting even further moves may be likely.

Economic data from the US has deteriorated to the extent the Fed will feel obligated to move although solutions must be forthcoming from Europe.

The G20 continues to concentrate on the EU debt crises and advocating growth and banking union readying for closer fiscal and political union. The liklihood will be moves to extend austerity measures into the future and relaxing terms. The full effect of this will be further 'can kicking' and failure to address the real issues.

The biggest pressure remains on the Germans to do more but they will be reluctant to pledge their tax dollars to bailout failed co-member nations. The German ZEW Economic Sentiment report remains an important indicator and this has collpased to negative 16.9 from 10.8!

The EUR reacted with a rally to 1.2715 and the GBP 1.5750 as markets sell the USD with further expansion of liquidity expected in the States. In the US, Housing Starts dropped 4.8% but this was balanced by a surge in Building Permits.

It is hard to see much in the way of positive economic news although the rally in equities and commodities continues to be fueled my stimulus. This has benefitted the higher yielding currencies with the AUD recovering to test 1.0200 and the KIWI now having a look at the big figure 8!

Central Banks and Politicians are talking a strong game but this does not change the fundamentals in the house of straw.

Collinson FX market Commentary: June 19, 2012

The political climax of the Greek elections has come and gone. The G20 meet in Mexico, which is ironic considering the mayhem realised by this nation over the last few years.

The problem with relying on politicians is their inability to lead. The Greek situation is likely to deteriorate as victory is hollow and unlikely to solve the current crises. The teat, that the socialist mass has been sucking on, has run dry.

The simple concept of 'living within their means' is too foreign to a land of socialist utopia. The problems will continue and will spread like cancer to Spain and other PIIGS nations.

The EUR rallied on the news, pushing up to 1.2575 and the GBP to 1.5650. Commodity currencies are major beneficiaries of this dramatic economic/political news and are becoming the new safety play.

The AUD bolted through parity to trade at 1.0115 and the KIWI breaking 0.7900. Major upheavals await, with the Fed likely to announce concerted central bank intervention to test the theory of monetary ineptitude. Printing even more money will not work, but the fiscal conundrum has overwhelmed political leaders. Put the seat belt on!

Collinson FX market Commentary: June 18, 2012

Markets rallied strongly to close the week but for all the wrong reasons. Equities and Commodities all had strong gains but not through market confidence or growing global demand but from expectations of Central Bank intervention.

The AUD blew through parity to trade well above 1 and the KIWI booked gains to trade 0.7870. The crescendo is nigh with storm clouds gathering across the EU and contagion spreading to global markets.

The G20 meet this week and talk of a co-ordinated central bank intervention pumping the banks with yet further liquidity. This will work but is completely destroying the real value of money. We have seen US wealth dissappear over the last years and the Fed is to blame.

The Central Banks across the Globe have held off to monitor the Greek elections and stand ready for massive reaction should the Greeks undermine the EU. The only answer now is the monetary action which only enriches Banks and encourages bloated and inefficient financial institutions.

The greatest fear is the 'run on Banks' which has commenced in Greece and Spain. The EU is said to make an important announcement regarding more long term solutions which must include greater fiscal and political union to match the single currency. Secondary to this will be economic data which has been in serious decline of late.

US Housing will be important but expectations are not high.

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=98700

8:27 PM Tue 19 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:

19 Jun 2012  Collinson FX Market Commentary: June 19, 2012 - Elections come and go
15 Jun 2012  Collinson FX Market Commentary: June 18, 2012 - AUD blows past Parity
14 Jun 2012  Collinson FX Market Commentary: June 14, 2012 - Greeks grab cash now
13 Jun 2012  Collinson FX Market Commentary: June 13, 2012 - US equity markets lift
12 Jun 2012  Collinson FX Market Commentary: June 12, 2012 - Moves fail to impress
11 Jun 2012  Collinson FX Market Commentary: June 11, 2012 - Strong finish to week
08 Jun 2012  Collinson FX Market Commentary: June 8, 2012 - World up Europe tanks
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
MORE STORIES ...




News - USA and the World

Team GBR’s Sparky on the Road to Rio (Part Two) *Feature by Rob Kothe and the Sail-World Team,


Team GBR’s Sparky on the Road to Rio (Part Two) by Rob Kothe and the Sail-World Team,
















Team GBR on the Road to Rio (Part One) by Rob Kothe and the Sail-World team,
















































ISAF Sailing World Cup Hyeres - Sailors tweet about opening day
49er Blog: Glorious racing to kick start Hyeres World Cup
Clipper Round the World Yacht Race - Continuous close racing
ISAF Sailing World Cup Hyères - Fluttering flags whet sailors appetite
Antigua Classic Yacht Regatta - Race 4 images by Jude Robertson
ISAF Sailing World Cup Hyeres - US Sailing Team Sperry Top-Sider Day 1
ISAF Sailing World Cup Hyeres - Day 1 Nacra 17 images by Thom Touw
ISAF Sailing World Cup Hyeres - Day 1 Laser images by Thom Touw
ISAF Sailing World Cup Hyeres: Ioannis Mitakis leads Finns after day 1
RC44 Cascais Cup - Fresh faces join the line-up
ISAF Sailing World Cup Hyeres - Excellent racing on opening day
ISAF Sailing World Cup Hyeres - Images by Yvan Zedda and Franck Socha
ISAF Sailing World Cup Hyeres - Day 1 images by Franck Socha
Hyeres World Cup: Kiwis lead but Outteridge Jensen back in 49er fray
Belcher and Ryan lead from the start in Hyeres
ISAF Sailing World Cup Hyères - Race day 1 ready for lift off
Clipper Round the World Race 11 - Tense match downwind racing on Day 2
Antigua Classic Yacht Regatta - Day 3 an absolute gem
Quantum Key West 2015 dates confirmed
Flying Tigers 'Psych' - on Lake Lanier they pronounce it Zhik
ISAF Sailing World Cup Hyeres: Anticipation intensifies as start nears   
Clipper Round the World Race - Race 11 start images by Chuck Lantz   
27th Antigua Classic Yacht Regatta 2014 - Big breeze on the butterfly   
Rolex China Sea Race 2014 - Pryde and Joy for Hi Fi   
Clipper Round The World Race - A flying start on Day 1 of Race 11   
Cammas on Caudrelier – different styles, same objective   
Clipper Race - Californian crew member continues fundraising journey   
Antigua Classic Yacht Regatta - Race 2 images by Jude Robertson   
Les Voiles de St Barth - Images by Christophe Jouany   
Clipper Round the World Yacht Race - Fleet sets sail in race 11   
Congressional Cup - Canfield and Team US One best star-studded field   
Clipper Round the World Yacht Race - Race 11 to get underway to Panama   
Antigua Classic Yacht Regatta - Race 1 images by Jude Robertson   
Rolex China Sea Race - Hi Fi collects the coveted IRC Overall title   
Rolex China Sea Race - First arrivals in Subic Bay   
Rolex China Sea Race 2014 - a sniff of a hat-trick for Neil Pryde   
America's Cup Book Review: Winging It - Oracle Team USA's comeback *Feature   
Clipper Round the World Yacht Race: Switzerland drops trou for charity   
Rolex China Sea Race 2014 - nip and tuck for IRC honours   
Antigua Classic Yacht Regatta - 27th edition underway   


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.
X6XL NEW US