Collinson FX market Commentary: April 18, 2013
Click here to find out how to get CollinsonFX's free iPhone app
Equities took another big hit sparked by increasingly bad news from Europe. Egan-Jones downgraded Germany and New Vehicle Sales fell by more than 10% setting a worrying trend. The fear that Germany would join the malaise is fast becoming a reality.
The EUR traded 1.3020 and the GBP 1.5230 which is not hugely significant considering the growing heat from the 'currency wars'. In the US, the Beige Book came in expectedly weak with modest to moderate growth across most regions. The uncertainty from US domestic terrorism and instability from North Korea and Europe are now impacting markets.
Risk appetite is under pressure and this is reflected in commodities and associated currencies. The AUD fell below 1.0300 and the KIWI 0.8430.
Collinson FX market Commentary: April 17, 2013
Markets were hit hard after the terrorist attack on the Boston marathon. The first major terrorist attack on the US mainland since 9/11 has shaken America and the markets. Markets were lower as sentiment had slipped earlier with the major hit to commodities lead by the collapse in Gold.
The rebound occured overnight with the DOW making triple digit gains and Gold rebounding strongly. This was expected and the question is to the validity of the recovery or a 'dead cat bounce'? In Europe things continue to unwind economically with the German and EU ZEW Economic Sentiment reports released and disappointing. These indicators are a very important litmus tests for the state of the EU economy and both have been hit hard reflecting the dire state of the single market. In the US, earnings continued to add to the confidence of the Bulls and Housing Starts rose 7%. Unfortunately Building permits fell 3.9% contradicting the data in this sector.
The Fed continues to keep the foot flat to the floor pushing risk assets higher crushing the negative economic fundamentals revealed by statistics. The inexorable rise in equities continues and to buck Bernanke is standing front of the runaway freight train!
This has given solace to the commodity currencies who drew confidence from the rebound with the AUD moving back to 1.0380 and the KIWI to just under 0.8500. The Bull run has resumed although Geo-Political issues remain a major obstacle with real economic realities hitting home. May is on the way!
Collinson FX market Commentary: April 16, 2013
Explosions around the Boston marathon has sent fear through markets. Equities crashed after domestic terrorism again hit the USA. Responsibility has not yet been claimed, or afforded, but it does seem terrorism has again hit at the heart of America, the Boston Marathon.
Equities were hit hard, with the Dow down 200, and associated risk assets also taking it on the nose. The AUD was impacted earlier after Chinese data concluded a fall in growth. Chinese GDP only grew at 7.7% missing the expectations of 8%. Industrial Production was lower, dipping below 10%, although it is hard to gauge the value of Chinese statistics. It is more a directional movement and this is the wrong way!
The main commodity currency has fallen from 1.0500 to trade 1.0350 and the KIWI below 0.8400 after testing 0.8600. Fear and instability always test risk markets and terrorism on American soil will scare many. It is not hard to guess the source.
Developments will determine the direction of markets, short term, but the fundamentals will probably enhance these instabilities. May is on the way!
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 - 12:00 AM Thu 18 Apr 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: