Please select your home edition
Edition




Collinson FX Commentary: Jan 30 - Boom times in US

by Collinson FX 30 Jan 2018 05:24 PST 31 January 2018
Day 2, Bay of Islands Sailing Week, January 25, 2018 © Richard Gladwell

Collinson FX Commentary: Jan 30 - Boom times in US

Inflation became the hot topic of conversation, in the bullish US economy, to open the new weeks trade. The booming US economy brings with it inflation. The extent of that inflation is the key question to be answered and managed.

For the first time in a generation, inflation has been welcomed, even sought.

Central Banks have employed extremely loose monetary policy, to stimulate growth and investment, which would be reflected in growth and inflation. US bond yields popped overnight to reflect just this scenario. This temporarily halted the crashing Dollar.

The EUR slipped back to 1.2340, while the Yen traded 109.10, reflecting the resurgent reserve. This directly impacted commodity prices and the associated currencies. The AUD fell below 0.8100, while the NZD tested 0.7300, on the downside. Bond yields remain the focus, to see if the Dollar moves are a flash in the pan, or a trend reversal?

For more on Collinson FX the latest update www.collinsonco.com/forex/trading-rooms/nz

Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |

Related Articles

Collinson FX: May 30: Trump in Court battles
Markets were shaken by the latest court order (latter upset on Appeal), in the USA. Markets were shaken by the latest court order (latter upset on Appeal), in the USA, by the US Court of International Trade. This effectively halted the Trump tariffs and was a boost to many Countries, that do not have a trade agreement with the USA Posted on 29 May
Collinson FX May 26: Trump Tariff movie hits EU
Trump's "Art of the Deal" trade wars movie gets released in Europe with a 50% opener on Sunday. Market sentiment turned negative, over the weekend, following the announcement of tariffs on the EU. President Trump announced a 50% tariff on all EU products, commencing 1st of June Posted on 26 May
Collinson FX May 22: USD down, others rise
The US Dollar weakness is a result of concerns surrounding the US economy and US growth. The EUR topped 1.1300, while the GBP broke back above 1.3400. The US Dollar weakness is a result of concerns surrounding the US economy and US growth. Moody's downgraded the US credit rating and economic data has been weak. Posted on 22 May
Collinson FX May 16: Tariffs depress inflation
Markets began to trade according to economic data releases, rather than fears held over global trade The latest US PPI was softer than expected, joining the last CPI inflation reading, confirming the tariffs have not raised inflation, but in fact the opposite. Posted on 16 May
Collinson FX May 12: US/China trade progress
The US Treasury Secretary meets, this coming weekend in Switzerland, with China. The US Treasury Secretary meets, this coming weekend in Switzerland, with China. This is the key trade agreement and progress is expected. Posted on 11 May
Collinson FX May 5: US markets rally strongly
Markets brush off a shock headline US GDP number, May opens on a strong note Markets in the US rallied strongly to close out a week of strong gains, brushing off a shock headline US GDP number. US equities rallied into the close for the week, opening the month of May on a positive note. Posted on 5 May
Collinson FX April 11: More whiplash for markets
Markets will be suffering severe whiplash, after the last couple of weeks trade. Markets will be suffering severe whiplash, after the last couple of weeks trade, and overnight was no exception. Asian and European markets posted big gains, bolstered by the Trump announcement of a ‘pause' on tariffs, on all but China. Posted on 11 Apr
Collinson FX November 11: Feel good US economy
US Federal Chairman says he is ,‘feeling good' about the US economy Markets continued to rally, following the huge wave of positive sentiment from the election of President Trump. The Fed unanimously voted to cut a further 25 basis points. US Federal Reserve Chairman, that he was ‘feeling good' about the US economy. Posted on 11 Nov 2024
Collinson FX June 7: ECB cuts rates
ECB (European Central Bank) cuts rates for the first time in five years, more cuts expected The ECB (European Central Bank) cuts rates for the first time in five years, as expected, offering relief to borrowers. Markets anticipate that the ECB will cut again, at least once, this year. Posted on 10 Jun 2024
Collinson FX: OCR hold lifts NZD
RBNZ was hawkish, citing inflationary pressures, in their decision not to change the Cash Rate RBNZ was hawkish, citing inflationary pressures, in their latest decision to leave interest rates at these elevated levels, until at least next year. That had the same impact on the currency, with the NZD rallying strongly following the RBNZ rate decision Posted on 22 May 2024