Collinson FX market Commentary: February 12, 2013
Click here to find out how to get CollinsonFX's free iPhone app
EU Finance Ministers gather in Brussels to discuss weighty financial problems facing the single market. At the top of the list is Greece and Cyprus and the state of the bailouts. The size of these countries have enabled the EU to afford continued bailout for the greater good, but the sheer magnitude must be scaring many.
Cyprus has applied for bailout for more than the total GDP of the country! This is beyond most reasonable peoples comprehension and dwarfs even the extent of the Greek intervention!
In the US, markets are looking forward to the State of the Union delivered by Obama Tuesday night. This will set out the agenda for his new administration and talk on the street is he will call for more stimulus. Incredible as it may seem, he is set to advocate for more spending to improve the economic situation. Keynes must be doing back-flips and somersaults in his grave with the corruption of his economic theory!
The EUR traded 1.3415 and the GBP 1.5675 with equity markets slipping with quiet market action. The Chinese New Year will mean a quiet trading week across Asia and a focus on Europe and the US. The KIWI continues to trade strongly around 0.8350 with Home Prices continuing to rise with a move up of 6.2%. Australian Home Loans contracted 1.5% as the AUD slipped below 1.0300.
A quiet week is expected although Political surprises cannot be underestimated!
Collinson FX market Commentary: February 11, 2013
EU Leaders met and reached an agreement on cutting the budget after pressure from Britain's PM Cameron.
This is the first meeting since Cameron floated the EU 'withdrawal boat' and leaders would be trying to accomodate the British to maintain unity. The EUR traded lower around 1.3350 and the GBP 1.5800, with many analysts wary of the Unions slip back to crises mode. In the US, the Trade deficit contracted surprising many but a fall in demand is hardly a reason to celebrate. The new week will look at Political developments in Europe with a G20 Finance Ministers meeting.
These gatherings usually achieve results as opposed to the Leaders meeting which is a photo-opportunity! A good look at growth (or lack thereof!) from Europe and Japan and Retail Sales in the US will all influence markets.
The AUD fell below 1.0300 after the RBA reviewed growth numbers lower although commodity prices inflated the AUD after Chinese Export data confirmed a surge.
The KIWI held 0.8350 reflecting the weakness in the reserve currency rather than any inherent domestic strength
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 - 9:50 PM Mon 11 Feb 2013 GMT
Click here for printer friendly version
Click here to send us feedback or comments about this story.
If you want to send this story to a friend, please use link below
Based on your current download speed Sail-World has delivered large images (660 pixels long side.) If you would like to see only small images (300 pixels long side) click here . For medium sized images (500 pixels long side) click here . If you would prefer to see text only (without pictures) click here
Click for further information on
2011 Collinson & Co
Related News Stories: