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Collinson FX Market Commentary - Feb 4, 2016 - USD crashes, others up

by Collinson FX on 4 Feb 2016
- Australian 18fter Nationals - Race 5 Richard Gladwell www.photosport.co.nz
Collinson FX Market Commentary - Feb 4, 2016 - USD crashes, others Click here to find out how to get Collinson FX's free iPhone app

Feb 4 - Currency markets exploded overnight with the Dollar being hit hard across the board. New York Fed President, Dudley, noted the impact of the high Dollar on trade and the looming global downturn. This translated into a capitulation on telegraphed tightening of monetary policy.

The Dollar crashed, with the EUR heading towards 1.1100, while the GBP approaches 1.4600. Commodity currencies experienced similar gains, with the NZD surging to 0.6650, aided by stronger than expected employment data and hawkish comments from the RBNZ Governor.

The AUD jumped to 0.7150, boosted by the reserve and strong Building Approvals. The commitment to raising rates in the U.S. was alway wishful in the light of global QE and the unwind of the Dollar is underway.

The Rag chases on leg 1 - Australian 18fter Nationals - Race 5 © Richard Gladwell www.photosport.co.nz
The Rag chases on leg 1 - Australian 18fter Nationals - Race 5 © Richard Gladwell www.photosport.co.nz


Collinson FX Market Commentary - Feb 2, 2016 - Oil spirals down

Feb 2 - 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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