Collinson FX Market Commentary - May 20-21

Collinson FX Market Commentary - May 20-21 - All currencies rise

by Collinson FX on 22 May 2017

Starling National Championships - Final Day - Wakatere Boating Club. April 18, 2017 Richard Gladwell www.photosport.co.nz

Collinson FX Market Commentary - May 20-21 - All currencies rise

US market continued to regain lost ground post faux-politics in the USA. The heated and sham politics in the US have unsettled markets but Trumps departure for Foreign lands may quiet things for a time!?

St Louis Fed President Bullard suggested rates will rise, but questioned the need for urgency, thus impacting bond rates and the Dollar. The EUR pushed through 1.1200, while the GBP broke above 1.3000, despite weak economic confidence in the Eurozone.

The weak reserve enabled commodity currencies, with the AUD hitting 0.7450, while the NZD traded above 0.6900 again. Trumps tour will provide Geo-Political points of issue but may calm the domestic politic.

Starling National Championships - Final Day - Wakatere Boating Club. April 18, 2017 © Richard Gladwell www.photosport.co.nz

Collinson FX Market Commentary - May 19 - Pressure off Trump

Markets recovered some of yesterdays lost ground, after an Independent Counsel was appointed to investigate the Russian interference, thereby relieving pressure on Trump.

The obstruction charge, that prompted talk of Trumps impeachment, was also questioned. A tape circulated that Comey denied the Presidents intervention. The Dollar also managed to regain some ground, with the EUR slipping below 1.1100, while the $/Yen traded 111.50. US Leading Indicators came in lower than expected, while the Philly Fed survey spiked higher.

The AUD held above 0.7400, supported by lower unemployment rate (down to 5.7%), while the NZD slipped back below 0.6900. The KIWI lost ground, despite a rise in Consumer Confidence, hit by a rising reserve. Markets would dearly love some calm to resume, in a chaotic political environment, surrounding Washington.

Starling National Championships - Final Day - Wakatere Boating Club. April 18, 2017 © Richard Gladwell www.photosport.co.nz

Collinson FX Market Commentary - May 18 - Politics divert markets

US Politics is spilling in to the world of finance. The Dow shed 350 points on the back of the turmoil swirling around Washington. The media are after Trump for sharing secrets with the Russians and obstruction with the FBI investigations.

The Dollar has also suffered the political crises, with the Yen charging under 111.00, while the EUR jumped to 1.1150. European inflation was flat, with the CPI holding below 2%, giving little reason for the single currency to rally so strongly.

The action is predominantly political coming out of Washington. The falling Dollar allowed the NZD jumped back above 0.6900, while the AUD held above 0.7400, despite drifting consumer confidence. Markets have been diverted towards politics until common sense returns.

Phil McNeil - Starling National Championships - Final Day - Wakatere Boating Club. April 18, 2017 © Richard Gladwell www.photosport.co.nz

Collinson FX Market Commentary - May 17 - NZD and AUD all rise

EU GDP was steady and economic sentiment, the ZEW report, came in stronger. UK inflation is beginning to rear its ugly head, as the CPI moved to 2.7% p.a., lending to support to tightening of future monetary policy. This boosted the GBP back above 1.2900, while the EUR breeched 1.1000, as the Dollar retreated.

The NZ Dairy auction continued to improve, supporting a recovery in the currency, pushing the NZD towards 0.6900. US Housing Starts contracted 2.6%, while Building Permits slipped 2.5%, giving little reason for a Dollar rebound.

The AUD also continues to rally, consolidating above 0.7400, after the RBA minutes confirmed little change in monetary policy.

Starling National Championships - Final Day - Wakatere Boating Club. April 18, 2017 © Richard Gladwell www.photosport.co.nz

Collinson FX Market Commentary - May 16 - Oil surges after Price Fix

Oil surged back towards $50/barrel, after Russia and Saudi Arabia struck a deal on limiting supply, looking to push the price up to a higher trading band.

US equity markets jumped and the Dollar slipped lower. The NAHB House Market Index managed to book gains, although this was tempered, by a slippage in the Empire State manufacturing survey.

The EUR climbed to 1.0970, while the GBP gave up further ground, slipping to 1.2890. The cyber attack, 'WannaCry', caused international disruption and may be a harbinger of things to come!?

Chinese Retail Sales were strong, while Industrial Production drifted lower, allowing commodity demand to rally. The AUD broke back above 0.7400, in to some clear air, while the NZD held above click here and here Or for the latest update click here

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

If you want to link to this article then please use this URL: www.sail-world.com/153976

Related Articles

Collinson FX: Apr 11: US interest rates to drop
The RBNZ left rates unchanged in NZ, but talked a big game, about holding rates higher The RBNZ left rates unchanged in NZ, but talked a big game, about holding rates higher and squeezing out inflation. This has the desired impact on the NZD, which initially pushed upwards, but the news from the US on inflation, destroyed that narrative.
Posted on 11 Apr Collinson FX are at the Hutchwilco Boat Show
Collinson Forex, a prominent financial services company, is at the Hutchwilco NZ Boat Show Collinson Forex, a prominent financial services company, is making a notable presence at the NZ Boat Show in Auckland from the 18th-21st of May, demonstrating their commitment to the industry.
Posted on 19 May 2023 Collinson FX: Jan 20: No change with PM's exit
The NZ ‘PM of Aotearoa' resigned yesterday, which had little impact on the currency. The NZ ‘PM of Aotearoa' resigned yesterday, which had little impact on the currency, as this will have little impact on the NZ economy.
Posted on 19 Jan 2023 Collinson FX: Dec 5 - Risk appetite rallies
US Federal Reserve Chairman confirms the rate of future interest rate rises may slow US Federal Reserve Chairman confirms the rate of future interest rate rises may slow, as early as December.
Posted on 5 Dec 2022 Collinson FX: Sept 30 - A finger in the dyke
Inflation remains the big problem haunting Central banks across the Western world The Bank of England in an effort to combat the reckless unfunded UK Government's fiscal spendathon mini-budget, kept bond yields lower but is a finger in the dyke. AUD crashed back to 0.6450, while the NZD plunged to 0.5650
Posted on 29 Sep 2022 Collinson FX: June 15 - 'Bear' territory
Markets are crashing across the Western world, with equities charging into ‘bear market' territory Markets are crashing across the Western world, with equities charging into ‘bear market' territory, while crypto's collapse.
Posted on 14 Jun 2022 Collinson FX: June 14: Equity markets routed
The rout on equity markets continued overnight, to open the new trading week and spread The rout on equity markets continued overnight, to open the new trading week and spread to bond and currency markets
Posted on 13 Jun 2022 Collinson FX: April 22: Markets react to inflation
Equity markets turned sour overnight, following strong recent gains Equity markets turned sour overnight, following strong recent gains, as markets look to consider the inflationary consequences across Europe and the US. Market realisation of the devastating impact of inflation and surging interest rates, is coming.
Posted on 22 Apr 2022