Collinson FX Market Commentary - Jan 15, 2016 - Oil stabilises

by Collinson FX on 15 Jan 2016 Collinson FX Market Commentary - Jan 15, 2016 - Oil Click here to find out how to get Collinson FX's free iPhone app

Jan 15 - Equity markets continued to lose ground until the U.S. rebounded strongly. Oil prices stabilised, bouncing back to $31/barrel, giving support to corrected markets. The U.S. Budget deteriorated, the deficit rising to $14.4 Billion, after posting recent gains.

The flight to safety has seen a return to the Dollar, which is having a trade impact, losing recent currency battles. The EUR traded 1.0840, while the GBP held 1.4400, after the Bank of England left interest rates unchanged.

The resurgent Dollar has consolidated the AUD below 0.7000, while the KIWI traded 0.6460, heavily impacted by the commodity slump.

Collinson FX Market Commentary - Jan 14, 2016 - Oil drops further
Jan 14 - Equities lost ground again overnight, with the headline being the Oil price, which tests $30/barrel! This is despite record levels of imports from China, proving this is not a demand issue, but supply. Middle East cartels are determined to wipe out production that made sense at $100/ barrel.

Economic data has been less than positive for some time, but challenges on the GeoPolitical front remain, driving uncertainty. The Dollar was steady, with the EUR trading 1.0840, while the GBP slipped to 1.4425.

Commodity prices reflect the strength of the reserve, moving the AUD back below 0.7000, while the KIWI remains weak on 0.6530. The uncertainty, globally, is breeding a lack in confidence on world markets to kick the year off. Politicians are supposed to provide calm and certainty but ideology continues to threaten markets.

Collinson FX Market Commentary - Jan 13, 2016 - Oil hits Perfect Storm
Jan 13 - Equities remained flat as the Oil price continues to spiral downwards. Oil is now is testing the $30/barrel mark, hitting the perfect storm, flagging demand and relentless supply.

The Dollar managed to book some gains, with the EUR slipping to 1.0825, while the GBP crashed to 1.4400! NZ Commodity prices contracted 1.8%, reflecting Dairy prices, confirming the slack commodity demand.

This has directly impacted the currencies, with the NZD trading 0.6525, while the AUD consolidates below 0.7000. Global markets remain the main driver of equities and currencies, while Geo-Political turmoil creates uncertainty, hitting confidence.

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Collinson FX Market Commentary - Jan 12, 2016 -
Jan 12 - Equities dropped again, after the last weeks open for the year, being the worst in five years. Chinese equities continued to hemorrhage, shedding a further 5%, although a fixing of the currency peg gave a whit of support. Oil continues to spiral south, falling below $32/barrel, new record lows. The unwinding of oil is hitting the energy sector hard and the associated stocks.

The U.S. Markets are now in (10%) correction mode and a hint agitated. The fall in energy prices is having an Impact on the consumer globally. This is a massive stimulus, expanding disposable incomes, boosting high energy consuming nations. This is all connected! The Dollar remains steady, with the EUR trading 1.0850, while the GBP dropped to 1.4540.

Commodity currencies have been hit hard by the falls in demand. The AUD trades well south of 0.7000, three big figures lower than a week ago, while the NZD wallows around 0.6525. Confidence is low in global markets and the geopolitical turmoil is adding to the destabilisation.

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