Collinson FX: May 15 - Budget has Kiwis on edge

by Collinson FX 14 May 2018 17:25 PDT 13 May 2018

Oceanbridge NZL Sailing Regatta, Day 3, February 5, 2018, Murrays Bay SC © Richard Gladwell

Collinson FX: May 15 - Budget has Kiwis on edge

15 May: The US trade negotiations continue with China and are progressing well. Trump has conceded the massive Chinese Company, ZTE, should be re-enabled in a compromise. The trade policy has a direct link to the North Korean negotiations, with the summit scheduled for June 12th. The US and Israel have celebrated the opening of the US Embassy in Jerusalem. This is a pointed signal to the world and a major realignment for the Middle East.

The Dollar was steady, with the EUR trading 1.1940, while the Yen moves to 109.65. Markets await some important economic data releases from the European Union, with GDP growth numbers and Industrial Production. The important ZEW Economic Sentiment report is usually an accurate gauge of future activity.

The AUD lost ground, falling to 0.7520, while the NZD looks to test 0.6900. The RBA releases minutes today, which should confirm the Central Banks propensity for inaction over monetary policy. The KIWI remains extremely vulnerable, ahead of the Rainbow Coalitions first budget, while monetary policy remains extremely generous.

Paul Snow Hansen, Dan Willcox (NZL) - Oceanbridge NZL Sailing Regatta, Day 3, February 5, 2018, Murrays Bay SC - photo © Richard Gladwell

Collinson FX: May 14 - Jitters over Middle East The Iranian crises continues to expand, as Israel responds to Iranian missiles, with attacks on Iranian bases in Syria. The US withdrawal from the Iranian nuclear agreement appears to be the trigger and now threatens the Syrian civil war spreading across the Middle East, becoming a multi-denominational conflict. Oil prices have gained some momentum, with the threat of sanctions being reimposed on Iran, boosting energy companies and stock markets.

The Dollar has been steady, with the EUR trading 1.1940, while the GBP holds above 1.3500. The GBP is again at the lower end of its trading range, after weak economic data releases and a dovish Statment from the Bank of England. The commodity currencies have been hammered, with the NZD trading 0.6950, while the AUD holding above 0.7500. The NZD came under extreme pressure after a reality check from the new RBNZ Governor.

This coming week has important growth data from Germany and Japan, while US Retail Sales are always an important number, to measure the health of the all-important consumer. Geo-Political issues remain front and centre of the coming weeks trade.

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

For more on Collinson FX the latest update click here now

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

Related Articles
Collinson FX May 19: Confidence build in USA
US buoyed by trillions of US$$ investment, into the USA off the back of US trade deals Markets rallied into the close of the previous week, buoyed by positive sentiment and growing confidence. Trump has secured two major trade deals securing Trillions of US$$ investment. Posted today at 1:49 am 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