Collinson FX Market Commentary - Sep 26 - US intends to lift rates

by Collinson FX on 27 Sep 2015 Collinson FX Market Commentary - Sep 26 - US intends to lift Click here to find out how to get Collinson FX's free iPhone app

Sep 26 - DOW gains were offset with S&P weakness, driven by mixed messages from the Fed, not assisted by Biotech sell offs hit by Democratic politics. Yellen made a wide ranging speech confirming the Feds intention to raise rates this year.

The proviso was, bar any ' economic surprises',which are bound to happen. Yellen has been talking rate rises all year and failed to act, due to extenuating circumstances, that will not change. Europe is in crises with refugee invasions and the mainstay manufacturing of cars under extreme pressure.

The EUR slipped below 1.1200, while the GBP dropped back to 1.5180, driven by a Dollar rebound due to Yellen's assurances. U.S. political turmoil reached a new level, with the resignation of Republican Speaker of the House as, the coming Presidential election impacts Washington. The AUD consolidated above 0.7000, while the NZD remained below 0.6400. Currencies remain the baby of Central Banks. The coming week will be driven by local economic data and shadowed by the Fed.

Collinson FX Market Commentary - Sep 25 - Aussie recovers
Sep 25 - European equities continued to haemorrhage, struggling to accommodate the massive influx of refugees , while the VW scandal threatens the industrial might of the engine room. The EU is being hit from all sides and does not have the institutions to cope, thus jeopardising their very existence.

The EUR remained firm, trading 1.1210, while the GBP slipped to 1.5230. The mendacious nature of the Union cannot sustain the external pressures which threatens the cultures the EU was set up to celebrate. Chinese markets are under extreme pressure with regular revision of growth and manufacturing data.

Commodities did manage a modicum of improvement which assisted a bounce in the associated currencies. The AUD recovered back above 0.7000, while the NZD trades around 0.6340, despite deteriorating trade data. U.S. Manufacturing and growth have been weak while Durable Goods Orders contracted 2%!

The economic recovery is slow and Central Bank commentary and actions corroborate this. Car industry scandals and refugee floods are all hitting market confidence while Central banks battle the currency wars with destruction of the currencies and creation of ever expanding asset bubbles.

Collinson FX Market Commentary - Sep 24 - AUD drops through milestone
Sep 24 - Chinese Manufacturing PMI data in China contracted, once again, hitting commodities and their associated currencies hard.

The AUD has slumped below 0.7000, while the Brazil currency hit an all time low, the NZD stumbling below 0.6240.

German and EU manufacturing PMI were both soft and Germany faces the massive challenge of the VW scandal spreading across the car market. This is the Rock on which the German economy is built and VW is the giant!

This added to the pressure from the influx of asylum seekers have created a siege in the engine of Europe. European stocks rallied, confounding many, but 'Super Mario' has stood behind further QE.

Draghi noted European markets were 'more challenging' on the macroeconomic level. The EUR traded 1.1180, while the GBP slipped to 1.5240, a continuation of the currency wars. Global Manufacturing and growth is being severely challenged and stumped Central Banks continue to run the money machines hot. No choice now and nowhere to go?!

Collinson FX Market Commentary - Sep 23 - Banks flood markets
Sep 23 - Global markets resumed the sell-off across commodities and equities. Chinese demand is contracting forcing commodities lower and impacting Europe and the US. The Feds lack of action has created asset bubbles across many asset classes.

Equities have been the major beneficiary of QE and are now correcting. Commodities experienced a huge demand boost to prices with a surging Chinese economy and an erosion in the reserve. The Fed are afraid to raise rates due to the weakness in the Global economies and the impact of rising capital costs. The Dollar continued the recent rally, pushing the EUR back to 1.1125, while the GBP fell to 1.5370.

Commodity currencies remain under extreme pressure, as demand pushes prices lower, accentuated by a rising reserve. The AUD pushed below 0.7100, despite surging Consumer Confidence and rising House Prices, while the NZD slipped under 0.6300. Central Banks, globally, have flooded markets with liquidity creating asset bubbles. These bubbles have a tendency to burst, rather than correct, creating extreme volatility and uncertainty.

Collinson FX Market Commentary - Sep 22 - A quiet start to week

Sep 22 - There were little in the way of economic revelations globally to commence the new week. Markets are still adjusting to the lack of action from the Fed, with QE full steam ahead, equities headed to their natural North. The Feds QE program has corrupted bond and equity markets and currencies have fought a battle to the bottom. The Dollar rebounded across the board, with the EUR slipping to below 1.1300, while the GBP dipped below 1.5500. Commodity currencies were under pressure with the rebounding Dollar pushing the AUD down to 0.7125, while the NZD broke below 0.6400. The Dollar may be experiencing a dead cat bounce, fuelled by promised future rate rises, but pipe dreams are free!

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